A firm increases its financial leverage when its ROA is greater than the cost of debt. Everything else equal, this change will probabily increase the firm's: 1. Beta II. Earnings variability over the business cycle III. ROE IV. Stock price III and IV only I. III, and IV only I and II only I, II, and III only Cache Creek Manufacturing Company is expected to pay a dividend of $3.36 in the upcoming year. Dividends are expected to grow at 8% per year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 14%. Investors use the CAPM to compute the market capitalization rate and use the constant-growth DDM to determine the value of the stock. The stock's current price is \$84. Using the constantgrowth DDM, the market capitalization rate is 14% 9% 18% 12% The Option Clearing Corporation is owned by the Federal Reserve System the Federal Deposit Insurance Corporation the exchanges on which stock options are traded major U.S. banks