The Level of EBIT That Will Equate EPS Between Two

question 102

Multiple Choice

The level of EBIT that will equate EPS between two different financing plans is called the:

• A)indifference point.
• B)optimal capital plan.
• C)break-even point.
• D)both A and C.

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Definitions:

Premium

The amount paid for an insurance policy, or the difference between the higher price paid for a bond above its face value.

Discount

A reduction applied to the regular price of goods or services, often to encourage sales.

Par Value

A nominal value or face value assigned to a share of stock by the corporation at the time of issue.

Articles Of Incorporation

These are legal documents filed with a governmental body to legally document the creation of a corporation.