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CA Inter doubt

What is financial break even point How it's related to this formula I- pref div ÷1- tax Pls derive this formula by giving the meaning of financial break even point

Asked by Keerthana19 Mar 2024545 views

2 answers

  1. Mayur · 19 Mar 2024

    If a company's capital structure consists of only preference shares and no debt then financial break even point= pref div ÷ 1 - tax

  2. Mayur · 19 Mar 2024

    Financial break even point is a point where EPS = NIL (0)

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