Question

g In the EBITminus−EPS approach to capital​ structure, risk is represented by​ ________. A. shifts in the cost of debt capital B. the slope of the capital structure line C. shifts in the timesminus−interestminus−earned ratio D. the slope of the capital market line

Answer 1

Answer:

B. the slope of the capital structure line

Explanation:

Earnings before interest and tax is an entry that is generated before paying off the taxes and the interest on loans. The earnings before interest and the earning per share approach are represented by the slope of the capital structure line. This capital structure line represents the difference between EBIT and EPS to better depict the earnings of an organization.