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प्रश्न
Which relationship produces Favourable Financial Leverage and an increase in EPS as debt increases?
विकल्प
EPS decreases as debt increases
RoI < Cost of Debt
RoI > Cost of Debt
Interest and repayment of principal are compulsory
MCQ
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उत्तर
Favourable Financial Leverage occurs when RoI exceeds the Cost of Debt. Under this relationship, EPS increases as debt increases.
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