you are comparing two possible capital structures for a firm. the first option

you are comparing two possible capital structures for a firm. the first option is an all-equity firm. The second option involves the use of $3.8 million of
debt. The break-even point between these two financing options occurs when the earnings efore interest and taxes (EBIT) are $428000. Given this you know that
leverage is beneficial to the firm:

A. whenever EBIT is less than $428000

B. only when EBIT is $428000

c. Whenever EBIT exceeds $428000

D. only if the EBIT is decreased by $428000

E. only if the debt is increased by $428000