Which of the following statements is/are true regarding corporate borrowing? 1. Increasing financial leverage increases the sensitivity of EPS and ROE to changes in EBIT. II. The effect of financial leverage depends on the company's EBIT-- leverage is favorable when EBIT is relatively high, and leverage is unfavorable when EBIT is relatively low. III. High leverage magnifies the returns to shareholders (as measured by ROE). Select one: a. I only b. ll only c. Ill only d. I and II only e. l, ll and I