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Homework answers / question archive / Hostia Inc
Hostia Inc. Is currently unlovered and is evaluating its target capital structure by calculating the break-even EBIT. the company's expected earnings before interest and taxes (EBIT) are greater than the break-even level, should the firm select to remain unlevered or to become levered? Assume there are no taxes Multiple Choice O cannot be determined from the information provided select the unlevered option since the expected EBIT is greater than the break-even level select the leverage option since the expected EBIT is greater than the break-even level ct the unlevered option since the debt-equity ratio is less than 0.50
