Creative Industries Inc

question 8

Multiple Choice

Creative Industries Inc.is looking to finance a new project with either debt or equity.The firm anticipates that its breakeven EPS-EBIT point is when EBIT reaches $3,000,000.If the projected EBIT are $3,500,000 for the foreseeable future,then to maximize EPS the firm should issue:

• A)equity.
• B)debt
• C)preferred shares.
• D)a dual class of equity.

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Definitions:

Sensation Seeking

The tendency to pursue sensory pleasure and excitement, often involving a higher risk of dangerous activities.

Anti-Social Risk

The potential for an individual to engage in behavior that is harmful or detrimental to society or social norms.

Disinhibition

The reduction of inhibition in behavior, often resulting in actions that are uncharacteristic or forbidden.

Uninhibited Social

Describes a state or behavior where an individual interacts freely and openly without self-consciousness or restraint.