+1 862 207 3288 1. Why is EBIT generally considered to be independent of financial leverage? Why might EBIT actually be influenced by financial leverage at high levels of debt?
2. Is the debt level that maximizes a firm's expected EPS the same as the one that maximizes its stock price? Explain.
3. Explain how a firm might shift its capital structure so as to change its weighted average cost of capital (WACC). What would be the impact on the value of the firm?
