Question: 1 points Se You are comparing two possible capital structures for a firm The first option is an all equity firm. The second option involves
1 points Se You are comparing two possible capital structures for a firm The first option is an all equity firm. The second option involves the use of 53.8 million of debt. The break-even point between these two financing options occurs when the earnings before interest and taxes (EBIT) are $42.000. Given this, you know that leverage cannot be beneficial to the firm OL only if the debt is increased by 3428,000 ul . whenever EDIT exceeds $420,000, ul whenever EBIT is less than $428,000 I only when EBIT is 5428,000 OV. only if the debt is decreased by 8428,000
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