True regarding financial leverage

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Reference no: EM131088291

Which of the following is true regarding financial leverage? A. When a firm increases its equity and decreases its debt, its leverage declines. B. Leverage is most beneficial when EBIT is relatively low. C. Increasing financial leverage will always increase the EPS for stockholders. D. The level of financial leverage that produces the minimum firm value is the one most beneficial to stockholders.

Reference no: EM131088291

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