Final answer:
The claim that interest rates do not influence the degree of financial leverage is false. Both the amount of debt and the interest rates influence this degree, as higher interest rates increase interest expenses and thus affect a company's net income.
Step-by-step explanation:
The statement that the degree of financial leverage is not influenced by the interest rate on debt, but only the amount borrowed, is false. Financial leverage is affected by both the amount of debt and the cost of that debt, which includes the interest rate. When a company takes on debt, it incurs interest expenses. If the interest rate increases, the company's interest expenses rise, and this can alter the degree of financial leverage. This is because the additional interest cost affects the company's net income, which is the numerator in the financial leverage ratio. Thus, both the amount of debt and the interest rate on that debt have an impact on the degree of financial leverage.