Which of the following statements is TRUE?
◦ When choosing a target capital structure, the goal is to increase the degree of operating leverage.
◦ A firm's degree of operating leverage has no impact on how much debt it uses.
◦ A firm's decision to use more debt can affect its cost of equity.
◦ Total leverage can be calculated by adding the degrees of financial and operating leverage together.
◦ All firms in an industry often have similar capital structures.