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

Question

Quizplus · Accepted Answer

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 break-even perspective, Green Co. is
A)breaking even.
B)lower than the breakeven point.
C)higher than the break-even point.
D)in need of new financing.

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