Financial leverage:
i.increases expected ROE but does not affect its variability.II.increases breakeven sales,like operating leverage,but increases the rate of earnings per share growth once breakeven is achieved.III.is a fundamental financial variable affecting sustainable growth.IV.increases expected return and risk to owners.

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Financial leverage increases the expected return on equity (ROE) and its variability, making both the return and risk to owners higher. It also increases breakeven sales and the rate of earnings per share growth once breakeven is achieved, similar to operating leverage. Additionally, it is a fundamental financial variable affecting a company's sustainable growth rate.

Financial Leverage: I.increases Expected ROE but Does Not Affect Its Variability.II.increases Breakeven