When comparing an all$-$equity capital structure to a levered capilal structure for a firr

Multiple Choice

earnings per share will always be higher in the all equily structure.

leverage lowers shareholders' returns in bad financial times.

firms will only select the levered structure when individual rates on borrowed fil

leverage improves shareholders' returns regardless of the firm's level of earning

the all$-$equity firm has a greater advantage the higher the firm's earnings beford