One type of leverage affects both ebit and eps the other, Accounting Basics

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One type of leverage affects both ebit and eps the other

Question: 1. "One type of leverage affects both EBIT and EPS. The other type affects only EPS." Explain this statement.

2. Why is the following statement true? "Other things being the same, firms with relatively stable sales are able to carry relatively high debt ratios."

3. Why do public utility companies usually have capital structures that are different from those of retail firms?

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Accounting Basics: One type of leverage affects both ebit and eps the other

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Accounting Basics: One type of leverage affects both ebit and eps the other

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