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Ali Tours is comparing two capital structures to determine how to best finance its operations. The first option consists of all equity financing. The second

Ali Tours is comparing two capital structures to determine how to best finance its operations. The first option consists of all equity financing. The second option is based on a debt-equity ratio of 0.45. What should AA Tours do if its expected earnings before interest and taxes (EBIT) are less than the break-even level? Assume there are no taxes

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