The Level of EBIT That Will Equate EPS Between Two

question 36

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)pivot point.
• D)tradeoff point

---

Definitions:

Inductive Reasoning

Type of logical reasoning that moves from particular observations about members of a class to a general conclusion about that class.

Emotions

Subjective reactions to experience that are associated with physiological and behavioral changes.

Health

The state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Positive Emotions

Feelings that are generally considered to be pleasant and desirable, such as happiness, joy, excitement, and love.