indifference point

Definition

In the operation of a company, the point at which the use of financial leverage over the use of equity capital produces no clear advantage in their effect on earnings-per-share creating an indifference on the part of the decision-makers.

Use indifference point in a sentence

If you want to know that you have been doing the right thing then you should be ahead of the indifference point.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

I wanted to know the indifference point because it was important for me to know the financial leveraging point involved.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

Our company CEO explained that he had reached the indifference point on our use of capital or loans to finance the new acquisition, and therefore did not care which we chose.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

Show more usage examples...

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
indifference curve indirect claim