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In the EBITminusEPS 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 timesminusinterestminusearned
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In the EBITminusEPS 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 timesminusinterestminusearned ratio D. the slope of the capital market line

User Noon Time
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Answer:

The correct answer is D

Step-by-step explanation:

EBIT deduct EPS approach to the capital structure is a technique which the businesses uses in order to determine the best ratio of equity as well as debt and that should be used to finance the assets as well as operations of the business.

This approach is a way or method to mathematically project how the structure of the balance sheet will impact the earnings of the company.

So, in this approach the risk is presented by the slope of the line of the capital market.

User Manikandan Kannan
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