32 QUESTION 26 330 340 35 360 Which of the following statements is correct? O a. The use of debt in the capital structure results in tax benefits to the firm. Ob.Debt is referred to as "financial leverage" because it magnifies returns to shareholders. OC. Debt management ratios evaluate whether a firm is financing its assets with a reasonable amount of debt versus equity financing. d. All of these statements are correct. I QUESTION 25 Which of the following is not an important factor to consider when selecting investment options? O a. The historical cost Ob. The probability of loss OC. The variability of returns O d. The duration of the investment