A decrease in fixed operating costs will result in ________ in the degree of financial leverage.
A) a decrease
B) an increase
C) no change
D) an undetermined change
Correct Answer:
Verified
Q90: Higher financial leverage causes _ to increase
Q91: Fixed financial charges include _.
A) common stock
Q92: An increase in fixed operating costs will
Q93: With the existence of fixed operating costs,
Q94: Financial leverage measures the effect of fixed
Q96: A firm has fixed operating costs of
Q97: _ is the potential use of fixed
Q98: Operating leverage measures the effect of fixed
Q99: _ is the potential use of fixed
Q100: _ leverage measures the effect of fixed
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