Other Things Held Constant,which of the Following Statements Is Correct

Multiple Choice

Other things held constant,which of the following statements is correct if a firm currently is operating at its financial breakeven point?

A) EBIT must be greater than zero.
B) EBIT would equal zero if the firm is financed only with common stock (i.e. ,there is no debt or preferred stock) .
C) EBIT would equal zero,hence EPS would be less than zero,if the firm has preferred stock but no debt.
D) EPS would equal zero only if the firm is financed with some amount of debt.
E) The firm would not be considered to have much financial risk,especially when compared to a firm that operates well above its financial breakeven point.