------ refers to that EBIT level at which EPS remains the same irrespective of the debt- equity mix.

Related MCQs

• Consider the below mentioned statements: 1. A debt-equity ratio of 2:1 indicates that for every 1 unit of equity, the company can raise 2 units of debt. 2. The cost of floating a debt is greater than the cost of floating an equity issue. State True or False:
• Between two capital plans, if expected EBIT is more than indifference level of EBIT, then
• If the weighting of equity in total capital is 1/3, that of debt is 2/3, the return on equity is 15% that of debt is 10% and the corporate tax rate is 32%, what is the Weighted Average Cost of Capital (WACC)?
• For a constant EBIT, if the debt level is further increased then
• Debt to Total Assets of a firm is .2. The Debt to Equity boo would be:
• Debt-to-total assets (D/TA) ratio is .4. What is its debt-to-equity (D/E) ratio?
• PAT of a company Rs. 100 lakhs and number of equity shares of Rs. 10 each with a capital of Rs. 50 lakhs, then EPS is:
• A firm has EBIT of . 50,000. Market value of debt is . 80,000 and overall capitalization rate is 20%. Market value of firm under NOI Approach is:
• Indifference Level of EBIT is one at which:
• Financial Break-even level of EBIT is one at which: