Business Studies > Business & Finance > Financial Management
Silk Ltd. had an EPS of ₹ 1. It raised a loan of ₹ 10 lakhs at an interest rate of 10% p.a. from a bank. After one year, the results were as follows:

(i) Why did EPS in Silk Ltd. rise with the use of debt?
(ii) If EBIT of the company would have been ₹ 3 lakh, would using debt still be favourable for the company? Explain.
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