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

Question 44

Multiple Choice

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

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