Question: The highest possible value for the interest - burden ratio is _ _ _ _ _ _ _ _ _ _ blank, and this occurs

The highest possible value for the interest-burden ratio is __________blank, and this occurs when the firm __________blank.
Multiple Choice
1; uses debt to the point where ROA = interest cost of debt
1; uses no interest-bearing debt
1; pays down its existing debts
0; uses as much debt as possible

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