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Green Co. has total debt of $400,000, a cost to borrow funds of 6%, and an EBIT of $42,500. From a financial perspective, Green Co.

Green Co. has total debt of $400,000, a cost to borrow funds of 6%, and an EBIT of $42,500. From a financial perspective, Green Co. has profits at

A. breaking even.

B. lower than the breakeven point.

C. higher than the break-even point.

D. in need of new financing.

PLEASE EXPLAIN THE ANSWER!!! thank you!!!!

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