4. Which of the following is true regarding financial leverage? a. Financial leverage ought to be most popular amongst firms that exhibit high variation in EBIT b. In order to reduce its financial leverage, IBM should increase its reliance on fixed costs c. Financial leverage refers to the magnification of the impact of revenue growth on EBIT. d. It is accepted that the degree of financial leverage is positively related to the cost of equity. 5. Which of the following is true regarding operating leverage? a. It refers to the use of debt in order to magnify the impact of EBIT changes on EPS. b. It is the highest in companies where part-time labor is employed. c. To reduce its operating leverage. IBM should replace plant/equipment with temporary workers. d. The higher the operating leverage, the lower the riskiness of the stock