Financial leverage

	a.	reduces the odds that a firm will encounter financial distress.
	b.	when overextended greatly magnifies the possibility that a firm will become bankrupt.
	c.	when used in moderation tends to lower the potential rewards to stockholders.
	d.	allows a firm to greatly increase its assets without increasing its debt.
	e.	refers to the issuance of company stock to finance a new business venture.