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As a result of the analysis of the two financing methods A and B considered by Hanyang Company, the capital raising indifference was calculated as

As a result of the analysis of the two financing methods A and B considered by Hanyang Company, the capital raising indifference was calculated as KRW 500,000; Prop A is a method of not using any additional capital, and Prop B is a method of using 80% of other capital of 10% interest cost. Which of the following explanations is not appropriate?
1. If the operating profit is less than 500,000 won, method B is advantageous to shareholders.
2.When the 0 operating profit is 500,000 won, the EPS of Proposal A and Proposal B are the same.
3. If the operating profit is 500,000 won, the two methods are indiscriminate.
4. Proposition B is more likely to fluctuate in shareholder profits.
5. Even if there is no tax, the net profit per share varies depending on the two methods.

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