You are comparing two possible capital structures for a firm. The first option is an alequity firm. The second option involves the use of $$3\mathrm{.}8$ million of debt. The breakeven point between these two financing options occurs when the earnings before interest and taxes $($EDIT$)$ are $$428,000.$ Given this, you know that leverage is beneficial to the firme

Multiple Croice

Whenever EEST is less than $$428,000.$

only when EBIT is $$428\mathrm{.}000.$

Whenever EBrT enceeds $$428,000.$

only if the debt in decreased by $5428,000.$