Which of the following statements is correct?

Group of answer choices

The breakeven point is that level of unit sales at which costs equal the WACC. Breakeven analysis may be performed with or without the inclusion of financial costs.

Under the tradeoff theory, if a firm went from zero debt to successively higher levels of debt you would expect that the firm's stock price would first rise, then hit a peak, and then begin to decline as the financial distress costs of debt begin to outweigh its benefits.

Financial leverage is the extent to which common equity is used in a firms capital structure. If a high percentage of a firms capital structure is in the form of equity, then the firm is said to have a high degree of financial leverage.