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Financial break even point

Financial Management

Can anyone explain the concept of financial breakeven point with formulas..

Sajeetha R

CA Final

★ 45K+

06-Mar-22 16:22

230

Answers (4)

Best Answer

Simply, Financial breakeven point is a point where earnings before income tax (EBIT) is equal to financial cost of a firm (or) earnings per share (EPS) is equal to zero.. FBP = interest + preference divided/(1-tax rate)

Chandu vadla

CA Final

★ 11K+

06-Mar-22 18:44

Chandu vadla

Whether EBT also be zero?

Thread Starter

Sajeetha R

CA Final

★ 45K+

06-Mar-22 18:48

Thread Starter

Sajeetha R

Whether EBT also be zero?

yes

Chandu vadla

CA Final

★ 11K+

06-Mar-22 19:06

Chandu vadla

yes

Thank u

Thread Starter

Sajeetha R

CA Final

★ 45K+

06-Mar-22 19:06

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