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All else being equal, this is true about a firm with high operating leverage relative to a firm with low operating leverage: Group of answer
All else being equal, this is true about a firm with high operating leverage relative to a firm with low operating leverage:
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A higher percentage of the high operating leverage firm's costs are fixed
The high operating leverage firm has more debt
The debt payments limit the high operating leverage firm's opportunities to turn a big profit
The high operating leverage firm is exposed to less risk
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