Based on the given information for each question, determine if the statement is True or False:

6. Mias Fashion Products, Inc. has sales of $8,125,000, variable costs of $2,843,750, fixed operating costs of $3,125,000, and interest expenses of $125,000. The firms marginal tax rate is 21%. Mia has no preferred stock outstanding.

T/F: Financial risk results from the use of fixed-interest debt as at least part of its capital requirements.

7. T/F: The Degree of Financial Leverage is defined as the percentage magnification of earnings after tax and preferred dividends (EAT) or earnings per share (EPS) for any given percentage change in Net Sales.

11. Lukes Trucks and Trailers, Inc. manufactures parts for long-haul tractor and trailer firms and is located in the United States. It purchases goods from Canada which are then sold to customers in the United States. The current exchange rate is C$1.35/$ (C$ stands for Canadian dollar and $ stands for U.S. dollar)

T/F: Firms may be motivated to have multinational activities. One of the motivations may be have access to low-cost labor abroad.

T/F: The Exchange rate is the price at which one currency can be exchanged for another currency.