For a constant EBIT, if the debt level is further increased then

Related MCQs

• Between two capital plans, if expected EBIT is more than indifference level of EBIT, then
• ------ refers to that EBIT level at which EPS remains the same irrespective of the debt- equity mix.
• 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:
• 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:
• In case of Net Income Approach, when the debt proportion is increased, the cost of debt:
• Indifference Level of EBIT is one at which:
• Financial Break-even level of EBIT is one at which:
• At Indifference level of EBIT, different capital have
• Financial break-even level of EBIT is:
• Financial break-even point is that level of EBIT at which ………….