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    Financial Management

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    Discuss the limitations of EPS/EBIT analysis.

    © BrainMass Inc. brainmass.com October 9, 2019, 11:39 pm ad1c9bdddf
    https://brainmass.com/business/business-policy-and-implementation/limitations-eps-ebit-analysis-263568

    Solution Preview

    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. //

    Introduction

    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 ...

    Solution Summary

    The expert discusses the limitation of EPS/EBIT analysis. The response addresses the queries posted in 464 words with references.

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