Financial Break-even level of EBIT is one at which:
A. EPS is one
B. EPS is zero
C. EPS is Infinite
D. EPS is Negative
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The Correct Answer for the given question is option B. EPS is zero
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Answer Explanation for Question: Financial Break-even level of EBIT is one at which:
A company’s financial break even point is when its EPS is zero. Break even refers to the level at which the company has recovered all fixed financial charges, such as interest on debt and preference dividends. The financial break even point is defined as the level of EBIT required to cover fixed financial costs, such as interest on debt and preference dividends.
Indifference Level of EBIT is one at which:
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