Question: 6 . Which statement about financial leverage is true? Group of answer choices If EBIT is above the break - even point, using more debt

6. Which statement about financial leverage is true?
Group of answer choices
If EBIT is above the break-even point, using more debt in the capital structure will lead to higher EPS for a given level of EBIT.
Using more debt in the capital structure will always lead to higher EPS for a given level of EBIT.
If EBIT is below the break-even point, using more debt in the capital structure will lead to higher EPS for a given level of EBIT.
If a firm uses debt in its capital structure, ROA is greater than ROE.
None are true.

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