Which one of the following statements concerning financial leverage is correct?

Select one:

a. The benefits of leverage are unaffected by the amount of a firm's earnings.

b. The use of leverage will always increase a firm's earnings per share.

c. The shareholders of a firm are exposed to less risk anytime a firm uses financial leverage.

d. Changes in the capital structure of a firm will generally change the firm's earnings per share.

e. Financial leverage is beneficial to a firm only when the firm has negative earnings