If a firm has no debt and EBIT increases by 10%, then one can expect ____.

A) EPS to increase by more than 10%
B) ROE to increase by less than 10%
C) net income to increase by 10%
D) ROCE to be less than ROE

EBIT

Earnings Before Interest and Taxes, a measure of a company's financial performance that excludes interest and income tax expenses.

EPS

Earnings Per Share; a financial ratio indicating the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.

ROE

Return on Equity; a measure of financial performance calculated by dividing net income by shareholders' equity.