High financial gearing will increase the earnings per share of the company if :

CS Executive · Financial and Strategic Management · PYQS · June 2022
High financial gearing will increase the earnings per share of the company if :
(A) Earnings before Interest and Taxes are rising
(B) Earnings before Interest and Taxes are falling
(C) Earnings after Taxes are rising
(D) Earnings after Taxes are falling

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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