Creative Industries Inc is looking to finance a new project with eithe
Creative Industries Inc is looking to finance a new project with either debt or equity. The firm anticipates that its breakeven EPS-EBIT point is when EBIT reaches $3,000,000.
If the projected EBIT are $3,500,000 for the foreseeable future, then to maximize EPS the firm should issue:
A) equity.
B) debt
C) preferred shares.
D) a dual class of equity.
ANSWER
B
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