In doing business in foreign countries, financing operations in the local market not only improves the company's business ties to the host community but also minimizes exchange rate risk

The increase in risk to equityholders when financial leverage is introduced is evidenced by:

A) higher EPS as EBIT increases. B) a higher variability of EPS with debt than all equity. C) increased use of homemade leverage. D) equivalence value between levered and unlevered firms in the presence of taxes.

The board of directors runs the organization of a day-to-day basis

a. true b. false