A firm with high operating leverage is best defined as a firm that has
A) a high debt-to-equity ratio.
B) high fixed costs relative to variable costs.
C) a low,relatively stable beta.
D) high variable costs relative to fixed costs.
E) a high sales/assets ratio.
Correct Answer:
Verified
Q24: Which one of these formulas will provide
Q25: If a company is all-equity financed,its WACC
Q26: Why is an accurate WACC so important
Q27: The use of WACC as the discount
Q28: Which one of these statements is correct?
A)ROE
Q30: A company's cost of debt will decrease
Q31: The terminal value of a company is
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Q33: In a changing interest rate environment,the cost
Q34: In project analysis,flotation costs are generally
A)included as
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