1. When utilizing the indifference point to help make a financing decision, if your projected EBIT is less than the EBIT calculated from the indifference point, the plan with the highest amount of debt (least # of shares) will give you:

a. The highest EPS

b. The lowest EPS

c. The same EPS

d. Cannot determine based on the information given

2. An owner maximizes their wealth when:

a. the company increases the assets

b. the companys cash flow goes up

c. the stock provides growth and dividends

d. the companys income goes up