True of False: A way to measure the advantage of financial leverage to owners is to examine EPS before borrowing additional funds.

True of False: Shareholders would benefit from the use of debt whenever EBIT is above the Break-Even EBIT.

True of False: Replacing equity financing with debt financing always leads to higher EPS.

________ capital structure refers to a combination of debt and equity that maximizes the value of the firm.

A.

A minimal

B.

An irrelevant

C.

An optimal

D.

A perfect