Statement 1: The higher the level of debt in the firm's capital structure, the higher the interest expense the company will pay. This will translate to higher business risk. Statement 2: The standard deviation of the selling price of our product is too high. Thus, we can increase our leverage to reduce our degree of combined leverage. Is Warren most likely correct or incorrect with regards to: Statement 1: Correct Statement 2: Incorrect Statement 1: Correct Statement 2: Correct Statement 1: Incorrect Statement 2: Incorrect Statement 1: Incorrect Statement 2: Correct