A CEO explains we can increase our expected return on equity by increasing leverage. Which of the following is the best response to this statement? A. This statement is not necessarily trueit depends upon a whole range of factors. B. This is false, equity holders are residual claimants and increased interest payments will leave less profit to distribute to shareholders. C. This is always true since leverage makes the firm more disciplined and increases returns. D. This is true, but the higher returns will be associated with increased risk.