Ignoring Taxes,leverage Becomes a Disadvantage to a Firm as Soon

question 79

Multiple Choice

Ignoring taxes,leverage becomes a disadvantage to a firm as soon as the firm's earnings before interest

• A)become negative.
• B)exceed the breakeven point.
• C)exceed the interest expense.
• D)exceed the firm's unlevered earnings.
• E)fall below the breakeven point.

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Definitions:

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