Question: Identify the correct statement: The EBIT-EPS indifference point is the point at which EBIT is the same under two different capital structures If EBIT is

Identify the correct statement: The EBIT-EPS indifference point is the point

Identify the correct statement: The EBIT-EPS indifference point is the point at which EBIT is the same under two different capital structures 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 always higher for an existing firm compared to a new firm

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