Green Co. has total assets $400,000, a cost of borrowed funds of 6%, and an EBIT of $42,500. From a financial breakeven perspective, Green Co. is
A) breaking even
B) lower than the break even
C) higher than the breakeven
D) in need of new financing

Question

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The Answer of Green Co. has total assets $400,000, a cost of borrowed funds of 6%, and an EBIT of $42,500. From a financial breakeven perspective, Green Co. is
A) breaking even
B) lower than the break even
C) higher than the breakeven
D) in need of new financing

Green Co Has Total Assets $400,000, a Cost of Borrowed Funds