In Considering EBIT-EPS Analysis, Which of the Following Statements Is/are

question 26

Multiple Choice

In considering EBIT-EPS analysis, which of the following statements is/are correct?

• A)If the expected earnings are above the indifference point, the debt option is preferred.
• B) If the expected earnings are below the indifference point, the equity option is preferred.
• C)Both statements a and b are correct.
• D)Neither statement a nor b is correct.

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Definitions:

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