CUET Preparation Today
| When does the earnings per share (EPS) rise with higher debt? |
When the rate of return on investment is higher than the rate of interest. When the rate of return on investment is lower than the rate of interest. When the rate of interest is more than the rate of return. None of the above |
| When the rate of return on investment is higher than the rate of interest. |
| EPS will fall when the Company’s rate of return on investment (RoI) is less than the cost of debt and EPS will rise when the Company’s rate of return on investment (RoI) is more than the cost of debt |
