By definition, a firm's financial breakeven point is the level of operating income (NOI) where its
A)stock value is maximized.
B)earnings before interest and taxes (EBIT) equal zero.
C)earnings per share equal zero.
D)taxes equal zero.
E)interest expense equal zero.

Question

Quizplus · Accepted Answer

The financial breakeven point is where the firm's net income is zero, meaning earnings per share (EPS) is zero, after accounting for interest and taxes.

By Definition, a Firm's Financial Breakeven Point Is the Level