Which of the Following Statements Is False

Which of the following statements is false?

A) Combined leverage is the effect on earnings produced by the operating and financial leverage.
B) There is strong empirical evidence that firms adjust their degrees of operating leverage and degrees of financial leverage to match some standard degree of combined leverage.
C) Financial risk is the additional risk, above business risk, resulting from substituting debt into the capital structure.
D) A firm's degree of combined leverage is the product of its degree of operating leverage and its degree of financial leverage.