Catapult Movers Has Determined That $98,000 Is the Break-Even Level

question 85

Multiple Choice

Catapult Movers has determined that $98,000 is the break-even level of earnings before interest and taxes for the two capital structures it is considering.The one structure consists of all equity with 30,000 shares of stock.The second structure consists of 20,000 shares of stock and $400,000 of debt.What is the interest rate on the debt?

• A)3.48 percent
• B)3.95 percent
• C)5.14 percent
• D)7.31 percent
• E)8.17 percent

---

Definitions:

Insert Record

The action of adding a new entry or row of data to a database or data table, increasing the dataset.

First Record

The initial record in a dataset or database, often containing the earliest entry or information.

Navigation Bar

A graphical interface element used in websites or applications for easy access to different sections or pages.

Beginning Record

The first entry or data point in a sequence or dataset, often used in database and data processing contexts.