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12. A Tech has fixed costs of $7 million and profits of $4 million. Its competitor, ZTech, is roughly the same size and this year

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12. A Tech has fixed costs of $7 million and profits of $4 million. Its competitor, ZTech, is roughly the same size and this year earned the same profits, $4 million. But it operates with higher fixed costs of $8 million and lower variable costs. a. Which firm would you expect to have profits that are more sensitive to the state of the economy? b. Which firm would you expect to have the higher stock market beta

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