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CBSE Class 12 Business Studies 2019 Outside Delhi set 1
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'Smart Stationery Ltd.', wants to raise funds of ₹ for its new project. The management is considering the following mix of debt and equity to raise this amount:
Other details are as follows:
| CapitalStructure | Alternative | ||
|---|---|---|---|
| I(₹) | II(₹) | III(₹) | |
| Equity | 40,00,000 | 30,00,000 | 10,00,000 |
| Debt | 0 | 10,00,000 | 30,00,000 |
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Question : 30 of 44
Marks:
+1,
-0
Does Earning Per Share always rise with increase in debt?
Solution:
No, EPS does not always rise with increase in debt.
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