Discuss financing leverage and earnings growth

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Question: Financing Leverage and Earnings Growth {Medium) At the bottom of Box 14.5 in this chapter there is a formula that shows how leverage affects earnings growth. Apply this formula to explain the increase in the earnings growth rate from 10 percent to 11.67 percent in Year 2 as a result of the increase leverage in the example above it.

Reference no: EM131491190

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