General Studies · Capital Structure
A company is considering two capital structures. Structure A: 100 percent equity with 1,00,000 shares. Structure B: 50 percent equity with 50,000 shares and 50,00,000 in 10 percent debt. At what level of Earnings Before Interest and Taxes (EBIT) will the Earnings Per Share (EPS) be identical for both structures? (Assume no corporate taxes).
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 115,00,000
- 210,00,000✓
- 312,00,000
- 48,00,000
Correct answer
10,00,000
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