Amanda knows that interest expense reduces profit. So she doesn't understand how earnings per share and return
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Amanda knows that interest expense reduces profit. So she doesn't understand how earnings per share and return on equity can be higher when a company finances with debt than if the company issues equity. Explain this to Amanda.
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If a company increases its debt its earnings per share will be higher under debt fi...View the full answer
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Somshukla Chakraborty
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