Question: Identify the correct statement: If EBIT is expected to be below the indifference point, the firm will prefer the capital structure with more debt If

Identify the correct statement: If EBIT is expected to be below

Identify the correct statement: If EBIT is expected to be below the indifference point, the firm will prefer the capital structure with more debt If EBIT is expected to be above the indifference point the firm will prefer the capital structure with more debt The EBIT-EPS indifference point is the point at which EBIT is the same under two different capital structures The EBIT-EPS indifference point is always higher for an existing firm compared to a new firm

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