Quiz Ch 16 – Impact of Leverage on Earnings Per Share and Share Price (MM Perspective)

Fundamentals of Corporate Finance

Brealey, Myers, and Marcus

10th Edition

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Why can leverage raise expected earnings per share while leaving the share price unaltered according to MM?

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  • Search Terms: a) according because: but decreased. c) decreases. b) earnings equity expected firm increase increases. d) is leave less leverage may mm, number of on operating per price required return risk risky. share shares still the thefirm's to unchanged
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