29. Which one of the following statements concerning financial leverage is correct?

		a) If a firm employs financial leverage, the shareholders will be exposed to greater business risk.
		b) A firm employing leverage will always have a higher earnings per share than a firm which does not employ leverage because of the benefit of tax shield.
		c) Financial leverage is always beneficial to a firm when the interest rate on the debt is less than 10 percent (the so-called 10% rule)
		d) The cost of equity will increase with the leverage ratio, although the firm value may not decrease.