$4.$M&M$,$ Inc. is comparing two capital structures to determine how to best finance the firm's operations. The first option consists of $100\%$ equity financing. The second option is based on a debt$-$equity ratio of $\mathrm{.}45.$ What should M&M do if expected earnings before interest and taxes $($EBIT$)$ are greater than the break$-$even level?Assume there are no taxes. a$)$ Select the leverage option since the expected EBIT is greater than the break$-$even level.

b$)$ Cannot be determined from the information provided.

c$)$ Select the unlevered option since the debt$-$equity ratio is less than $\mathrm{.}50.$

d$)$ Select the unlevered option since the expected EBIT is greater than the break$-$even level.

e$)$ Select the leverage option because the debt$-$equity ratio is less than $\mathrm{.}50.$