The effects of financial leverage depend on the operating earnings of the company. Based on this relationship, assume you graph the EPS and EBI for a firm, while ignoring taxes. Which one of these statements correctly states a relationship illustrated by the graph? Below the break-even point unlevered structures have a lower EPs for every dollar of El than levered structures do Financial leverage decreases the slope of the EPS line Above the break even point the increase in EPS for univered structures is greater than that of kevered structures for every dollar increase in EBI Above the break-even point, the unlevered structure is preferred Leverage only provides value above the break even point