Which one of the following activities is an example of equity financing AND its effect on financial leverage Select one: Asking your mate to invest in the firm - Decrease Asking your mate to invest in the firm - Increase Borrowing money from your mate - Decrease Borrowing money from your mate - Increase An entity's degree of financial leverage primarily depends on its: Select one: debt-to-equity ratio level of fixed costs closeness to its operating break-even point sales variability