QUESTION 1 . Financial leverage is caused by _ O Variable opearting costs O Fixed operating costs O Dividends Interest expense QUESTION 2 Which of the following is true about debt? O Firms face a tradeoff between the tax shield provided by debt and the increased risk of bankruptcy. O Firms face a tradeoff between the tax shield provided by debt and the decreased risk of bankruptcy. O Debt provides both the benefit of providing a tax shield and decreasing bankruptcy risk. O Debt increases taxes for a firm and also increasese bankruptcy risk