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6. Companies A and B have the same firm value and are all equity financed. They are considering a new capital structure of 50% debt

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6. Companies A and B have the same firm value and are all equity financed. They are considering a new capital structure of 50% debt and 50% equity. If company A has a higher EBIT breakeven level, which company is more likely to adopt the new capital structure? A) Company A. B) Company B. C) Same. D) Neither. E) None of the above

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