cn any one explain what is EBIT – EPS analysis?
cn any one explain what is EBIT – EPS analysis?
Is it EBIT-EPS or EBIT/EPS??
EBIT-EPS
Please refer the enclosed notes....
thanx rajan............. but as a term in layman language what does it mean why it is used i wanna know its purpose
The EBIT-EPS analysis, as a method to study the effect of leverage, essentially involves the comparison of alternative methods of financing under various assumptions of EBIT.
EBIT-EPS Break-Even Analysis -- Analysis of the effect of financing alternatives on earnings per share. The break-even point is the EBIT level where EPS is the same for two (or more) alternatives.
Refer below link for some clarity
https://campus.murraystate.edu/academic/faculty/lguin/FIN330/EBIT_EPS.htm
okkkkk.... now i got it is just a technique to determine which option is better to choose for a company in order to raise its capital which will also increase its earning per share. isn't it????
Yes exactly and also which option is less risk with higher EPS.
thanx a ton.....will disturb u again shortly with more quries .................:)
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