The break-even model enables the manager of the firm

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Reference no: EM131050886

The break-even model enables the manager of the firm to:

a. determine the optimal amount of debt financing to use.

b. calculate the minimum price of common stock for certain situations.

c. set appropriate equilibrium thresholds.

d. determine the quantity of output that must be sold to cover all operating costs.

Reference no: EM131050886

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