AA Tours is comparing two capital structures to determine how to best finance its operations. The first option consists of all equity financing. The second option is based on a debt-equity ratio of 1 . What should AA Tours do if its expected earnings before interest and taxes (EBIT) are greater than the break-even level? Assume there are no taxes. select the unlevered option since its EPS is higher when expected EBIT is greater than the break-even level select the levered option since its EPS is higher when expected EBIT is greater than the break-even level select the unlevered option since the debt-equity ratio is less than 1. select the leverage option since the expected EBIT is less than the break-even level