Question 6 1 pts 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 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 If EBIT is expected to be below the indifference point, the firm will prefer the capital structure with more debt Question 7 1 pts Which of the following would you consider an appropriate definition of financial leverage? O declaring a stock dividend or a stock split instead of a cash dividend financing assets with fixed cost financing like debt Paying dividends with borrowed money using the appropriate cost of capital to find the NPV O using fixed operating costs rather than variable operating costs