Financial breakeven analysis can be used to help evaluate the impact various forms of financing,such as debt and equity,will have on the riskiness of a firm.

Question

Quizplus · Accepted Answer

Financial breakeven analysis can help in determining the level of sales required for a firm to cover all its costs, including fixed and variable expenses. This analysis can aid in evaluating the impact of different financing options like debt and equity on the firm's profitability and riskiness. Therefore, the statement is true.

Financial Breakeven Analysis Can Be Used to Help Evaluate the Impact