When does the earnings per share (EPS) rise with higher debt?

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Question:When does the earnings per share (EPS) rise with higher debt?

1.When the rate of return on investment is higher than the rate of interest.

2.When the rate of return on investment is lower than the rate of interest.

3.When the rate of interest is more than the rate of return.

4.None of the above.

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  1. When does the earnings per share (EPS) rise with higher debt?
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