You are comparing two financial policies.The first is all equity.The second involves the use of $2 million of debt. The break-even point between these two policies occurs when the earnings before interest and taxes (EBIT) is $450,000.Given this, it is accurate to say that leverage _____ beneficial to the firm when EBIT is $325,000 and _____ beneficial when EBIT is $625,000.

a. is; is not

b. is; is

c. is not; is not

d. is not; is

e.The answer cannot be determined based on the information provided.