The correct answer is A. EPS is one.
Financial break-even is the point at which a company’s revenue is equal to its costs. At this point, the company is not making any profit or loss. EPS, or earnings per share, is a measure of a company’s profitability. It is calculated by dividing a company’s net income by the number of shares outstanding.
When a company is at financial break-even, its EPS will be equal to one. This is because the company’s net income will be equal to its costs, and the number of shares outstanding will be constant.
Option B is incorrect because EPS cannot be zero. This is because a company must have some level of revenue in order to cover its costs. If a company has no revenue, it will not be able to pay its employees, suppliers, or other expenses.
Option C is incorrect because EPS cannot be infinite. This is because a company’s net income is limited by the amount of revenue it generates. If a company generates an infinite amount of revenue, its net income will also be infinite.
Option D is incorrect because EPS cannot be negative. This is because a company’s net income cannot be less than zero. If a company’s net income is negative, it means that the company is losing money.