Which of the Following Is/are Helpful for Evaluating the Effect

Multiple Choice

Which of the following is/are helpful for evaluating the effect of leverage on a company's risk and potential returns?
I.Estimated pro forma coverage ratios
II.The recognition that financing decisions do not affect firm or shareholder value
III.A range of earnings chart and proximity of expected EBIT to the breakeven value
IV.A conservative debt policy that obviates the need to evaluate risk

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