Which stream of income is not affected by how a firm is financed (whether with debt or equity)?

Question

Quizplus · Accepted Answer

Operating profit is not affected by how a firm is financed as it represents the fundamental profitability of the business before considering interest charges and taxes.

(Note: A, B, and D are affected by how a firm is financed. Net profit after tax but before dividends can be impacted by the tax deductibility of interest payments on debt, and net working capital can be affected by the amount of debt and equity financing used to fund current assets. Income before tax can also be impacted by interest charges on debt.)

Which Stream of Income Is Not Affected by How a Firm