Same EBIT
Same EPS
Same PAT
Same PBT
Answer is Wrong!
Answer is Right!
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
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different capital structures can have different levels of profitability.
Option C is incorrect because PAT is a measure of a company’s net income, and different capital structures can have different levels of net income.
Option D is incorrect because PBT is a measure of a company’s profit before tax, and different capital structures can have different levels of profit before tax.