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A. High business risk means a company also has high financial risk B. If a mature public firm announces that it is seling a new

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A. High business risk means a company also has high financial risk B. If a mature public firm announces that it is seling a new stack offering the signaling theory says that a negative signs regarding the fime's fulure has been created. C. The higher a firm's degree of operating leverage, the lover its breatieven point tends to be. D. Lower operating leverage genenly encourages a him to have a lower debt ratio. E. The degree of tobl leverage is caused only by the tact thes faud costs do not vary proportionaly with sales

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