stion 56 Which statement about leverage is correct? vored Select one: sed out lag O a During recessions, companies with high leverage tend to see their EPS fall further than companies in the same industry with little or no leverage. O b. A company can decrease its leverage ratio by repurchasing some of its common shares e. During economic expansions, companies with high leverage tend to see their EPS fall further than companies in the same industry with little or no leverage. d. Adding debt to a company's capital structure increases leverage and reduces risk stion 57 inflation is associated with: wered Select one: ked out of Fino a lower interest rates and lower P/E ratios O b. lower interest rates and higher PVE ratios e higher interest rates and higher P/E ratios d higher interest rates and lower P/E ratios iton stion 58 What is the risk assumed by both split preferred share investors and split capital share investors? yet wand ked out of Select one: a. Credit risk b. Dividend cuts c. Reinvestment risk ng ston d. Volatility