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Jageman Athletic Apparel has a debt-equity ratio of.4 and earnings before interest and taxes (EBIT) of $265,000. The break- even level of EBIT is $338,000.

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Jageman Athletic Apparel has a debt-equity ratio of.4 and earnings before interest and taxes (EBIT) of $265,000. The break- even level of EBIT is $338,000. Based on this information, you know the: Multiple Choice Debt of the firm is a disadvantage. Firm is operating at its optimal level. Firm would be more profitable if it lowered its level of output. Firm should increase its debt-equity ratio. Firm has minimized its weighted average cost of capital

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