Financial Leverage: I.increases Expected ROE but Does Not Affect Its Variability.II.increases Breakeven

Multiple Choice

Financial leverage:
i.increases expected ROE but does not affect its variability.II.increases breakeven sales,like operating leverage,but increases the rate of earnings per share growth once breakeven is achieved.III.is a fundamental financial variable affecting sustainable growth.IV.increases expected return and risk to owners.

A) I and II only
B) I and III only
C) II and IV only
D) II,III,and IV only
E) I,II,III,and IV