Question: Whats the option is correct A,B,C or D Only the answer without explain Question 16 1 points You are comparing two possible capital structures for


Whats the option is correct A,B,C or D
Only the answer without explain
Question 16 1 points 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 $428,000. Given this, you know that leverage cannot be beneficial to the firm: O1 only if the debt is decreased by $428.000 O II. whenever EBIT exceeds $428,000. O II whenever EBIT is less than $428,000. IV. only if the debt is increased by $428.000 O V. only when EBIT is $428,000. Question 17 1.5 points Midwest Fastener Supply stock is expected to return 16 percent in a normal economy, 12 percent in a booming economy, and -3 percent in a recession. The probabilities of an economic boom, normal state, or recession are 12 percent. 80 percent and 8 percent respectively. What is the expected rate of return on this stock? OL 11.91 percent O II. 14.00 percent O IL 11.70 percent IV. 11.28 percent O v. 11.65 percent
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