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Ignoring taxes, leverage becomes a disadvantage to a firm as soon as the firm's earnings before interest Multiple Choice become negative. fall below the break

Ignoring taxes, leverage becomes a disadvantage to a firm as soon as the firm's earnings before interest

Multiple Choice

become negative.

fall below the break

-

even point.

exceed the break

-

even point.

exceed the interest expense.

exceed the firm's unlevered earnings.

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