Which of the following statements regarding financial leverage is true? A leveraged firm has less variation in EBIT than in ROE and EPS A leveraged firm has more variation in EBIT than in ROE and EPS. A leveraged firm has greater variation in EBIT than in sales. A leveraged firm has less variation in EBIT than in sales. QUESTION 5 If management decides to maintain dividends even if there is a downturn in the economy, this may be due to the legal liability from not paying dividends. desire to lower future taxes when the economy is better signaling effect of dividends. targeting impact of dividends