Which of the following statements are incorrect regarding how much debt a company should borrow? Choose all that apply.

Question 9 options:

	As long as the company can generate higher returns on its new projects than its borrowing interest rate, borrowing more debt will enhance the company's ROE.
	Borrowing more debt will increase a company's distress level.
	The bigger the company, the more it should borrow
	Debt is considered a more expensive capital source.