Define each of the following terms: a. Capital structure; business risk; financial risk b. Operating leverage; financial leverage; break-even point c. Reserve borrowing capacity What term refers to the uncertainty inherent in projections of future ROIC? Firms with relatively high nonfinancial fixed costs are said to have a high degree of what? "One type of leverage affects both EBIT and EPS. The other type affects only EPS." Explain this statement. Why is the following statement true? "Other things being the same, firms with relatively stable sales are able to carry relatively high debt ratios." Why do public utility companies usually have capital structures that are different from those of retail firms? Why is EBIT generally considered to be independent of financial leverage? Why might EBIT be influenced by financial leverage at high debt levels? 3 If a firm went from zero debt to successively higher levels of debt, why would you expect its stock price to first rise, then hit a peak, and then begin to declin