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  • Leverage, EBIT EPS Analysis Notes

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    Bruh Yooink
    9 views6 pages
    This document discusses leverage and its impact on financial ratios. It defines leverage as relating two interrelated variables, where one variable changes based on the change in the other. It provides an example of how higher leverage can increase return on equity by using debt to increase earnings per share. It also discusses analyzing financing decisions by looking at the effect on return on investment, return on equity, and quality of earnings for shareholders.

    Original Description:

    Unit 3 notes p2

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    This document discusses leverage and its impact on financial ratios. It defines leverage as relating two interrelated variables, where one variable changes based on the change in the other. It provides an example of how higher leverage can increase return on equity by using debt to increase earnings per share. It also discusses analyzing financing decisions by looking at the effect on return on investment, return on equity, and quality of earnings for shareholders.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    9 views6 pages

    Leverage, EBIT EPS Analysis Notes

    Uploaded by

    Bruh Yooink
    This document discusses leverage and its impact on financial ratios. It defines leverage as relating two interrelated variables, where one variable changes based on the change in the other. It provides an example of how higher leverage can increase return on equity by using debt to increase earnings per share. It also discusses analyzing financing decisions by looking at the effect on return on investment, return on equity, and quality of earnings for shareholders.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 6

    clAs Mate

    Date
    Page

    |UNIT2 financng Cectiyn


    Leverge Pratust

    Leverage
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