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If the firm were to instead have a debt ratio of 40% additional interest expense would cause profits available to stockholders to decline to $1560000 but only 342857 common shares would be outstanding. What is the difference in EPS at a debt ratio of 40% versus 20%?

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If the firm were to instead have a debt ratio of 40% additional interest expense would cause profits available to stockholders to decline to $1560000 but only 342857 common shares would be outstanding. What is the difference in EPS at a debt ratio of 40% versus 20%? Lever Brothers has a debt ratio (debt to […]

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