Financial breakeven point represents the level of earnings after interest and taxes necessary for a firm to cover its fixed operating and financial changes-that is, the point at which dividends per share is equal to zero.

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Financial breakeven point represents the level of earnings before interest and taxes necessary for a firm to cover its fixed operating and financial changes. It is the point at which the firm is able to cover all of its expenses but has not yet generated enough profit to pay dividends to shareholders.

Financial Breakeven Point Represents the Level of Earnings After Interest