Solve the equation.
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Definitions:
EBIT
EBIT stands for Earnings Before Interest and Taxes, a measure of a firm’s profitability that excludes interest and income tax expenses.
EPS
Earnings Per Share, a company's profit divided by the number of its common shares outstanding, indicating the company's profitability.
EBIT-EPS Line
A graphical representation showing the impact of financial leverage on a company's earnings per share at various levels of earnings before interest and taxes.
Financial Leverage
The use of borrowed funds to increase the potential return on investment, often measured by the ratio of a company's debt to its equity.
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