Which of the following is considered a financially leveraged firm?

A company that uses debt to finance some of its assets

A company that uses only equity to finance its assets

Which of the following is true about financial leverage?

Under economic growth conditions, firms with relatively low leverage will have higher expected returns.

Under economic growth conditions, firms with relatively more leverage will have higher expected returns.

Influenced by a firm's ability to make interest payments and pay back its debt, if all else is equal, creditors would prefer to give loans to companies with $$ times interest earned $($TIE$)$ ratios.