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.

Question

Quizplus · Accepted Answer

The level of EBIT that equates EPS between two different financing plans is known as the indifference point. It is the point at which the two financing plans are equally desirable or preferable. Therefore, option A is the correct answer. Option B is incorrect since it refers to the best financing plan that optimizes the capital structure, while option C is incorrect because it is typically associated with accounting or cost analysis, and is not directly related to financial management.

The Level of EBIT That Will Equate EPS Between Two