1) Unsuccessful use of financial leverage

a. decreases earnings per share.

b. increases investors' rate of return.

c. decreases interest expense.

d. increases earnings per share.

2)

The higher the debt ratio,

	a.	the lower are the firm's total assets.
	b.	the greater are the firm's total assets.
	c.	the greater is the use of financial leverage.
	d.	the lower is the use of financial leverage.