2. Which of the following statements best describes a firm's financial risk? It: A) decreases with an increase in long-term debt B) increases with an increase in long-term debt C) decreases with a decrease in stockholder's equity D) is unaffected by long-term debt 43. Your firm has a DOL of 1.25 and an EBIT of $500,000. If sales increase by 10%. calculate the percent ch A) 12% B) 12.5% C) 1.25% D) 0.1 25% 44. Operating leverage has the effect of triggering: A) a smaller percentage change in EBIT when a given percentage change in sales occurs B) a smaller given percentage change in EBIT when a larger percentage change in sales occurs C) a smaller given percentage change in EBIT when a smaller percentage change in sales occurs D) a larger percentage change in EBIT when a given percentage change in sales occurs BIT when a given percentage