1 The indifference point is the intersection of two lines relating EPS as a function of EBIT for two different leverage scenarios. So far, we've found the intersection visually and confirmed that the EPS was equal for different leverage scenarios. 1. Calculate the indifference point algebraically by finding the intersection of the two EPS VSEBIT lines in Example 14-3. Hint: you'll first have to represent each line in the form of y=mx+b. Then sale for the intersection, i.e., x such that both equations are equal. 2. You may write out your algebra long hand and upload a scan, use Excel, or any graphics program 3. Check your work for completeness and accuracy before pressing "Submit". Figure 14-3 EBIT-EPS Analysis for Arizona Balloon Corporation from Table 14-1, Columns 1 and 2 EPS $4 DO son De $3.00 Adur og 5209 NE verone 5100 ENT 5100 300 Adventugo 5200 in the w 1 The indifference point is the intersection of two lines relating EPS as a function of EBIT for two different leverage scenarios. So far, we've found the intersection visually and confirmed that the EPS was equal for different leverage scenarios. 1. Calculate the indifference point algebraically by finding the intersection of the two EPS VSEBIT lines in Example 14-3. Hint: you'll first have to represent each line in the form of y=mx+b. Then sale for the intersection, i.e., x such that both equations are equal. 2. You may write out your algebra long hand and upload a scan, use Excel, or any graphics program 3. Check your work for completeness and accuracy before pressing "Submit". Figure 14-3 EBIT-EPS Analysis for Arizona Balloon Corporation from Table 14-1, Columns 1 and 2 EPS $4 DO son De $3.00 Adur og 5209 NE verone 5100 ENT 5100 300 Adventugo 5200 in the w