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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.

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Question: What advice would you give to someone interested in buying Contesco stock?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172533

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