Same EBIT
Same EPS
Same PAT
Same PBT
Answer is Right!
Answer is Wrong!
The correct answer is: B. Same EPS
EPS is calculated by dividing EBIT by the number of shares outstanding. Therefore, at an indifference level of EBIT, different capital will have the same EPS.
Option A is incorrect because EBIT is a measure of a company’s profitability, and different capital structures can have different levels of profitability.
Option C
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