Respuesta :
Ignoring taxes, at the break-even point between a levered and an unlevered capital structure, the company is earning just enough to pay for the cost of the debt.
A obligation to pay cash or one more settled upon worth to an outsider, the lender, is known as an debt. Debt contrasts from a quick buy in that installments are conceded or made in portions. An obligation is a measure of cash that has been acquired for a set timeframe and should be reimbursed, in addition to premium. The borrower's financial soundness influences both the obligation's size and its acknowledgment. Gotten obligation, uncollateralized debt, rotating obligation, and home loans are the four essential classes of individual obligation. Uncollateralized debt is basically founded on an individual's reliability, though got obligation includes a security of some kind.
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Complete Question is -
ignoring taxes, at the break-even point between a levered and an unlevered capital structure, the: multiple choice company is earning just enough to pay for the cost of the debt. earnings per share for the levered option are exactly double those of the unlevered option. company's earnings before interest and taxes are equal to zero. company has a debt-equity ratio of .50. advantages of leverage exceed the disadvantages of leverage.
