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Type of leverage affecting ebit and eps

Question:

I heard something from Bob the bartender the other day (Joe, the former bartender, left to form a financial consulting company). He said one type of leverage affects both EBIT and EPS. Then he said the other type of leverage affects only EPS. What do you think he meant by each of his statements?

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Finance Basics: Type of leverage affecting ebit and eps

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Finance Basics: Type of leverage affecting ebit and eps

Reference No:- TGS02075427

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