Basic tools of capital structure management include:
A)EBIT-EPS analysis.
B)comparative profitability ratios.
C)capital budgeting techniques.
D)none of the above.

Question

Quizplus · Accepted Answer

EBIT-EPS analysis is a commonly used tool to determine the optimal capital structure of a company by assessing different levels of debt financing and their impact on earnings per share (EPS) at different levels of EBIT (earnings before interest and taxes). Comparative profitability ratios and capital budgeting techniques are important tools for financial analysis and management, but not specifically related to capital structure management.

Basic Tools of Capital Structure Management Include