The relationship between operating and financial leverage is additive rather than multiplicative.
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Q63: Operating leverage results from the existence of
Q64: The degree of operating leverage depends on
Q65: The base level of EBIT must be
Q66: Operating leverage is present when a firm
Q67: When a firm has fixed operating costs,
Q69: Operating leverage may be defined as the
Q70: The effect of financial leverage is such
Q71: Financial leverage may be defined as the
Q72: Financial leverage results from the presence of
Q73: The base level of sales must be
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