1.why is debt often referred to as leverage in finance. 2. suppose you were the financial manager for a firm and were considering a proposed increase in the amount of debt in the firm's capital structure. if you thought the firm was going to consistently earn a level of EBIT above its break-even level of EBIT (based on the current and proposed new capital structure)would this cause you to prefer leveraging the firm up or staying at your current capital structure?