Question

In: Accounting

The uncertainty associated with a firms ability to translate EBIT into earnings per share is A....

The uncertainty associated with a firms ability to translate EBIT into earnings per share is

A. Operational risk
B. Financial risk
C. Risk of illiquidity
D. None of the above.

Solutions

Expert Solution

B. Financial risk

The uncertainty associated with a firm's ability to translate EBIT into earnings per share. This increases with financial leverage.

ekkarill92 answered 2 years ago
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