Which of the following statements is CORRECT?

Other things held constant, the higher a firm's total debt to total capital ratio,

the higher its TIE ratio will be$.$

Debt management ratios show the extent to which a firm's managers are

attempting to reduce risk through the use of financial leverage. The higher

the total debt to total capital ratio, the lower the risk.

Debt management ratios show the extent to which a firm's managers are

attempting to magnify returns on owners' capital through the use of financial

leverage.

Other things held constant, the more debt a firm uses, the higher its profit

margin will be$.$

Other things held constant, the more debt a firm uses, the higher its

operating margin will be$.$