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प्रश्न
What happens to Company X Ltd.'s EPS as debt increases?
विकल्प
EPS becomes the Cost of Debt
EPS increases as debt increases
EPS decreases as debt increases
EPS remains Nil
MCQ
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उत्तर
Company X Ltd.'s EPS rises from ₹0.93 to ₹1.05 to ₹1.40 as debt increases. This is Favourable Financial Leverage, so Trading on Equity is advisable.
shaalaa.com
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