Post Utme Osustech 2022 Commerce Question 37

Practice objective / multiple choice question 37 from the 2022 Post Utme Osustech Commerce examination.

Post Utme Osustech 2022 Commerce Objective / Multiple Choice

Question 37 POST_UTME_OSUSTECH • 2022 • COMMERCE • objective

A company's financial leverage is a measure of its use of debt financing. What is the effect of financial leverage on a company's earnings per share?

Answer Options

Correct Answer A. It increases earnings per share

B. It decreases earnings per share

C. It has no effect on earnings per share

D. It increases the risk of bankruptcy

Correct Answer

Correct Option:

It increases earnings per share

About This Question

This is Post Utme Osustech 2022 Commerce Question 37. It is one of the objective questions from the 2022 Post Utme Osustech Commerce examination.

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