Financial breakeven point represents the level of earnings before interest and taxes necessary for the firm to cover its fixed operating and financial changes that is, the point at which earnings per share (EPS) is equal to zero.

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The statement is incorrect. Financial breakeven point represents the level of earnings before interest and taxes necessary for the firm to cover its fixed operating and financial charges, that is, the point at which the firm's revenues equal its expenses, including both fixed and variable costs. It does not necessarily mean that earnings per share (EPS) is equal to zero.

Financial Breakeven Point Represents the Level of Earnings Before Interest