Question

The level of ebit which covers all fixed financing costs of the company it is the level of ebit at which eps is zero is called

Answer 1

It is the level of EBIT which covers all fixed financing costs of the company. It is the level of EBIT at which EPS is zero. It is the point at which different sets of debt ratios (percentage of debt to total capital employed in the company) gives the same EPS.

Answer 2

Answer:

Explanation:

It is the level of EBIT which covers all fixed financing costs of the company. It is the level of EBIT at which EPS is zero. It is the point at which different sets of debt ratios (percentage of debt to total capital employed in the company) gives the same EPS.