Companies are sometimes able to show very rapid growth in EPS over a few years. This often gets investors interested and they bid the stock's price up. Suppose Contesco Inc. has such a record over the last three years which have been very favorable in its industry. At the same time, however, Contesco's capital has gone from 20% to 80% debt. What advice would you give to someone interested in buying Contesco stock?

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The Answer of Companies are sometimes able to show very rapid growth in EPS over a few years. This often gets investors interested and they bid the stock's price up. Suppose Contesco Inc. has such a record over the last three years which have been very favorable in its industry. At the same time, however, Contesco's capital has gone from 20% to 80% debt. What advice would you give to someone interested in buying Contesco stock?

Companies Are Sometimes Able to Show Very Rapid Growth in EPS