A firm with a higher degree of operating leverage would be considered less risky than a comparable firm with a lower degree of operating leverage.A company with a higher degree of operating leverage will experience larger swings in profit as a result of changes in sales revenue,and so will be considered more risky.

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A company with a higher degree of operating leverage will experience larger swings in profit as a result of changes in sales revenue, making it more vulnerable to economic downturns and less stable in terms of financial performance, which increases risk.

A Firm with a Higher Degree of Operating Leverage Would