(EBIT-300-440)( 1-25%)/800 =(EBIT-300)( 1-25%)/(800+200)
Calculate EBIT=2500 million yuan,
2. When the earnings before interest and tax are greater than the indifference point of earnings per share, debt financing is adopted, and when the earnings before interest and tax are less than the indifference point of earnings per share, equity financing is adopted. Specific to this question:
Earnings per share of scheme 1: (ebit-I1) (1-t)/n1= (2600-740) (1-25%)/800 =1.7440.
Earnings per share of scheme 2: (ebit1-I2) (1-t)/N2 = (2600-300) (1-25%)/(800+200) =1.725.
Without considering the financial risks, the earnings per share of Scheme I is greater than that of Scheme II, so Scheme I should be adopted for financing.