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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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