You've computed the break$-$even point between a levered and an unlevered capital structure. Ignore taxes. At the break$-$even level, the

Question $19$ options:

$1)$

advantages of leverage exceed the disadvantages of leverage.

$2)$

firm is earning just enough to pay for the cost of the debt.

$3)$

firm's earnings before interest and taxes are equal to zero.

$4)$

earnings per share for the levered option are exactly double those of the unlevered option.