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In an EPS-EBI graphical relationship, the debt line and the no debt line intersect. Which one of the following is true at the intersection point?

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In an EPS-EBI graphical relationship, the debt line and the no debt line intersect. Which one of the following is true at the intersection point? Multiple Choice There is no advantage or disadvantage to debt. The advantages of debt outweigh the disadvantages of debt. The EPS is maximized for both the levered and the unlevered firm. The earnings per share for both capital structures equal zero. The aftertax earnings of both capital structures are equal

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