Management Notes

Reference Notes for Management

Indifference Level of EBIT is one at which:

Indifference Level of EBIT is one at which:

A. EPS is zero
B. EPS is Minimum
C. EPS is highest
D. None of these

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The Correct Answer for the given question is option D. None of these

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Answer Explanation for Question: Indifference Level of EBIT is one at which:

An indifference level of EBIT is one where the EPS remains the same regardless of the debt equity mix. Two or more of the available financial plans may result in the same EPS for the same EBIT when the firm has several available financial plans. 

Higher FL is related the use of:

Smirti

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