The value of EBIT at which EPS is equal to zero is known as Break even point Operating break even point Overall break even point Financial break even point

The value of EBIT (Earnings Before Interest and Taxes) at which EPS (Earnings Per Share) is equal to zero is known as the Financial Break Even Point.

Here's a step-by-step explanation:

1. EBIT is a measure of a company's profitability, calculated as revenue minus expenses, excluding tax and interest.

2. EPS is a measure of a company's profitability calculated as net income - preferred dividends / average outstanding shares.

3. When EPS is zero, it means that the company is not making enough profit to distribute to its shareholders.

4. The Financial Break Even Point is the point at which a company's EBIT is just enough to cover its financial expenses, such as interest on debt. At this point, the company is not making a profit, but it is not losing money either.

5. Therefore, the value of EBIT at which EPS is equal to zero is known as the Financial Break Even Point.