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Question
Financial Break-even level of EBIT is one at which EPS is equal to _________.
Financial Break-even level of EBIT is one at which EPS is equal to _________.
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Solution
The correct option is B Zero
Financial break even of EBIT is that level when the EPS is zero. Financial break even is that level when the company has recovered its fixed financial charges i.e. interest on debt and preference dividend.
Financial break even is further defined as the minimum level of EBIT required to pay off the fixed financial cost i.e. interest on debt and preference dividend.
Financial break even of EBIT is that level when the EPS is zero. Financial break even is that level when the company has recovered its fixed financial charges i.e. interest on debt and preference dividend.
Financial break even is further defined as the minimum level of EBIT required to pay off the fixed financial cost i.e. interest on debt and preference dividend.
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