Advertisements
Advertisements
प्रश्न
What happens to Company Y Ltd.'s EPS as debt increases?
विकल्प
EPS remains ₹0.47
EPS decreases as debt increases
EPS increases as debt increases
EPS becomes the Cost of Debt
MCQ
Advertisements
उत्तर
Company Y Ltd.'s EPS falls from ₹0.47 to ₹0.35 to Nil as debt increases. This is Unfavourable Financial Leverage, so Trading on Equity is inadvisable.
shaalaa.com
क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
