What does indifference point mean in EBIT-EPS analysis? Select one: O a. The point of indifference refers to the level of EPS at which EBIT is the same regardless of the different capital structure alternatives that the company has. O b. The point of indifference refers to the level of EBIT at which the EPS is the same regardless of the different alternatives of capital structures that the company has. It is the capital structure that maximizes the company's EPS for that period. O d. The indifference point shows the combination between the different sources of capital that maximize the value of the company measured by its EBIT.

"Address the limitations of traditional methods such as CAPM (Capital Asset Pricing Model) andDiscounted Cash Flow Analysis in valuing a company's stock price in non - stationary marketconditions. Particularly, discuss the consistency of the beta coefficient in determining the cost ofcapital and the selection of the risk - free rate. Also, evaluate how these traditional models can orcannot integrate non-financial factors (e. g., company management, brand value, industry trends).Lastly, discuss the alternative models used in stock valuation and the advantages and disadvantagesof these models compared to traditional methods."

Why do maximizing EPS and maximizing value not necessarily lead to the same conclusion about the optimal capital structure?

3. Explain the relationship between the weighted average cost of capital (WACC), the maximization of firm value, and financial decision making.

(b) Why might the usefulness of EPS (earning per share) be limited? Give reasons to support your answer.

How does a semi-strong market affect a company’s capital structure? Discuss the possible exposures and impact. Provide examples to justify your reasoning.