Question: Which statement about financial leverage is true? Group of answer choices None are true. Using more debt in the capital structure will always lead to

Which statement about financial leverage is true?

Group of answer choices

None are true.

Using more debt in the capital structure will always lead to higher EPS for a given level of EBIT.

If a firm uses debt in its capital structure, ROA is greater than ROE.

If EBIT is below the break-even point, using more debt in the capital structure will lead to higher EPS for a given level of EBIT.

If EBIT is above the break-even point, using more debt in the capital structure will lead to higher EPS for a given level of EBIT.

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