Multiple Choice Questions on If in a particular situation the earnings per share EPS falls with the increased use of debt it indi........... for Commerce 12th Preparation

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Multiple Choice Questions

If in a particular situation the earnings per share EPS falls with the increased use of debt it indi...........

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    If in a particular situation, the earnings per share (EPS) falls with the increased use of debt, it indicates that

    The rate of return on investment (Rol) is less than the cost of debt.

    Correct Answer

    The rate of return on investment is more than the cost of debt.

    Incorrect Answer

    The cost of debt is less than the rate of return on investment.

    Incorrect Answer

    None of the above

    Incorrect Answer
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    Explanation:

    The rate of return on investment (Rol) is less than the cost of debt.

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