In EBIT-EPS analysis, the indifference point is found at the point where for the two alternative financing plans are equal.
A)EBIT
B)EPS
C)stock prices
D)DOL

Question

Quizplus · Accepted Answer

The indifference point in EBIT-EPS analysis is where the Earnings Per Share (EPS) for two different financing plans are equal, indicating no advantage of one plan over the other at that level of EBIT.

In EBIT-EPS Analysis, the Indifference Point Is Found at the Point