Expert Analysts Resources (EAR) has provided you with the following information about three companies you are currently evaluating:
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C
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Based on this information, which firm is regarded as having the greatest overall risk?
A) Acme, because it has the highest degree of financial leverage (DFL) .
B) Acme, because has the highest degree of total leverage (DTL) .
C) Apex, because it has the highest degree of total leverage (DTL) .
D) Alps, because it has the highest degree of operating leverage (DOL) .
E) Acme, because it has the lowest degree of operating leverage (DOL) .
Correct Answer:
Verified
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