When a firm has financial leverage: a. ROI will be greater than ROE. b. ROI will usually be less than it would be without leverage. c. risk is greater than if there isn't any leverage. d. the firm will always have a higher ROE than it would without leverage. Can you please tell me why the wrongs ones are wrong? I read in the book and it looks like some could be wring because of a single word. I would guess "C" because the leverage adds the risk to it. I know "A" is wrong because the ROE is usually higher, "B" might or might not be right because I saw that sometimes, if things go wrong, the ROE can drop and lead to bankruptcy. I don't think "D" is right because it says ALWAYS and like I said before, the book said that ROE can drop below ROI at times when a company hits bankruptcy. Thank you