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प्रश्न
Explain the following as factors affecting the choice of capital structure:
Return on Investment
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उत्तर
Factors affecting the choice of capital structure:
Return on Investment: Debt offers the higher return in the sense that in case of debt, the difference between cost and return is greater. Accordingly, the earning per share is greater.
Higher ROI ⇒ More debt
Lower ROI ⇒ Lower debt
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