YWhich of the following is$/$are True regarding Debt?

I. Debt is considered leverage, increasing the earnings potential of the firm's assets

II$.$ Debt increases potential earnings without increasing potential losses

III. It is always optimal for a firm to avoid debt in maximizing the long$-$term value of the firm

Multiple Choice

All are True

All are False

Only I is True

Only I and II are True

Only I and III are True

$$500\mathrm{.}57$

$$556\mathrm{.}61$

$$482\mathrm{.}89$

$$526\mathrm{.}68$

$$450\mathrm{.}51$