Because there are no fixed financing costs,a common stock plan line in an EBIT-EPS analysis chart will have a less-steep slope than will a bond plan line.

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This is because common stock does not have fixed interest or financing costs like bonds do, so changes in EBIT will have less of an impact on the EPS for common stock compared to bonds. Therefore, the common stock plan line will have a less-steep slope than the bond plan line in an EBIT-EPS analysis.

Because There Are No Fixed Financing Costs,a Common Stock Plan