Question: inc is comparing two capital structures to determine how to best finance the firm's operations. the first option is based on a debt-equity ratio of

inc is comparing two capital structures to determine how to best finance the firm's operations. the first option is based on a debt-equity ratio of .45 what should M&M do if expected earnings before interest and taxes are greater than the break even level? assume there are no taxes a) select the leverage option because inc is comparing two capital structures to determine how to best finance the firm's operations. the first option is based on a debt-equity ratio of .45 what should M&M do if expected earnings before interest and taxes are greater than the break even level? assume there are no taxes a) select the leverage option because the debt-equity ratio is less than .50 b) selecte theunlevered option since the expected EBIT is greater than the break even level c) select the unlevered option since the debt-equity ratio is less than .50 d) cannot be determined with info provided e) select the leverage option since the expected EBIT is greater than the break-even level

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