The level of EBIT at which EPS will be equal for two different capital structures is known as:
A) break-even EBIT.
B) break-even EPS.
C) break-even capital structures.
D) break-even financial structures.

Question

Quizplus · Accepted Answer

The break-even EBIT is the level of earnings before interest and taxes at which the earnings per share (EPS) is the same for two different capital structures.

The Level of EBIT at Which EPS Will Be Equal