This is from the textbook, I’m a bit confused by the wording “net cash flow used in financial activities” - why doesn’t it state “net cash flow from financial activities”?
The correct ansnwer is C. If I understand it correctly, company B pays less interest and thus has larger net income, hence the higher EPS? However the question states “all else equal” - what “else” does it refer to? I thought that includes net income too.
Any insight will be greatly appreciated!