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    ______________ is a situation of favourable Financial leverage
    Question

    ______________ is a situation of favourable Financial leverage

    A.

    ROI < Cost of Debt

    B.

    ROI > Cost of Debt

    C.

    ROI = Cost of Debt

    D.

    EPS = Cost of Debt

    Correct option is B

    When ROI > Cost of Debt, the situation is of favourable Financial leverage.

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