A firm with a higher proportion of fixed costs will create
A) a higher degree of sensitivity of EBITDA to a change in revenues.
B) a lower degree of sensitivity of EBITDA to a change in revenues.
C) no discernible difference of a change in sensitivity of EBITDA to a change in revenues.
D) a firm with a much more stable net income stream as a function of revenues.
Correct Answer:
Verified
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