Ask Question
20 July, 15:44

It is possible for Firms A and B to have identical financial and operating leverage, yet for Firm A to have more risk as measured by the variability of EPS. This would occur if Firm A has more business risk than Firm B. A. TRUEB. FALSE

+1
Answers (1)
  1. 20 July, 16:52
    0
    A. TRUE

    Explanation:

    Earnings variability is sometimes considered a negative sign as investors do not know whether the company's earnings in one year can be sustained in the next and this would happen with Firm A if it is proven to have more risk
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “It is possible for Firms A and B to have identical financial and operating leverage, yet for Firm A to have more risk as measured by the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers