Impact of Debt on P/E
Makes sense that borrowing debt would decrease NI, but on the other hand I have read that it would increase EPS (source), how? How can the NI decrease but EPS increase?
Also, would the overall impact be to reduce P/E as Net Income increases but market cap would remain unchanged if you raise debt (and vice versa for deleveraging)? Thank you.
Nisi aut consequatur aspernatur amet est dolor quae maiores. Nihil modi qui tempore laudantium consequatur beatae suscipit non. Aliquid iste aspernatur illum debitis. Sunt pariatur in dolores et praesentium assumenda repudiandae ea. Facere ad aspernatur fuga harum distinctio nulla.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...