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Indifference point

Generally to equal EPS of two alternative financial plan need to any amount of EBIT, analysis that is "Indifference Point".

According to Besley and Brigham,” The EPS indifference point is the level of sales at which EPS will be the same, whether the firm uses debt or common stock financing.”

According to Van Horn,” The level of EBIT that produces the same level of EPS for two alternative capital structure.”

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