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16. Leverage becomes a disadvantage to a firm as soon as the firm's earnings before interest: a. become negative. b. exceed the break-even point. c.

16. Leverage becomes a disadvantage to a firm as soon as the firm's earnings before interest:

a. become negative.

b. exceed the break-even point.

c. are taxed.

d. exceed the firm's unlevered earnings.

e. fall below the break-even point.

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