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Definition of this subject
Indifference point may be defined as that EBIT level at which the earnings per share or EPS is the same for two alternative financial plans. It is the point of intersection of two alternative financial plans. In case the EBIT exceeds the indifference point of EBIT, by using the fixed-cost funds the EPS are considered benificial to the firm. In simple words indifference point is the difference between two alternative financial plans. Indifference point helps a firm to reach to a point where total costs and profits are the same under alternative financial plans. To measure indifference point there is a cost indifference point analysis tool which determines the point where there is no difference in cost. If you are stuck in understanding the topic then best indifference point assignment help service fully equipped with tools to help you understand step by step.
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