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Hostia Inc. is currently unlevered and is evaluating its target capital structure by calculating the break-even EBIT. If the company's expected eamings before interest and
Hostia Inc. is currently unlevered and is evaluating its target capital structure by calculating the break-even EBIT. If the company's expected eamings before interest and taxes (EBIT) are greater than the break-even level, should the firm select remain unlevered or to become levered? Assume there are no taxes. Multtole Choice select the leverage option because the debt-equity ratio is less than 0.50 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 select the unlevered option since the debt-equity ratio is less than 0.50
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