The Degree of Financial Leverage of a firm: Multiple Choice can easily be determined from the balance sheet. does not vary with the level of operations of the firm. varies with the level of EBIT. is equal to the break-even point in units. A firm with stable cash flows operating in favorable economic conditions should: Multiple Choice use less debt to maximize shate values. focus on short-term financing focus on equity financing. use more debt to maximize share values. Which of the following does not influence a firm's use of operating leverage? Multiple Choice The amount of debt in the capital structure. Anticipated economic conditions. The riskaversion of management. Nature of the business