Discuss the limitations of EPS/EBIT analysis.© BrainMass Inc. brainmass.com December 15, 2020, 4:46 pm ad1c9bdddf
The response addresses the queries posted in 464 words with references.
// The capital structure is a very important factor, which determines the profitability of an Organization. The composition of a firm's capital can either make or break a Company's market standing and productivity. In this paper, we will understand the concept of EPS and EBIT, as well as, also outline their limitation in deciding the capital structure of a Company. //
In financial decision making, capital structure is considered the most intricate area. A company can bear high capital cost due to poor capital structure decision and vice-a-versa. A company's decision to choose debt finance or ...
The expert discusses the limitation of EPS/EBIT analysis. The response addresses the queries posted in 464 words with references.