Which of the following statements about levered metrics versus unlevered metrics is TRUE?

1. Unlevered metrics reflect the companys operations and the effects of financial activities

2. In general, the effects of financing are the difference between unlevered metrics and levered metrics

3. Levered metrics do not consider how the company is financed

4. The disaggregation into levered and unlevered metrics can only be applied at the overall firm level

Yashin Inc. plans to issue new long-term bonds to finance a $1,000,000 plant expansion. What impact will the new debt have on the operating and financial leverage of Yashin Inc.

1. Its operating leverage will decrease and its financial leverage will decrease

2. Its operating leverage will not change and its financial leverage will decrease

3. Its operating leverage will not change and its financial leverage will increase

4. Its operating leverage will decrease and its financial leverage will increase