Ch.12 If a firm's operating leverage is the relative higher then it's competitors Select one: a. It's
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Question:
Ch.12 If a firm's operating leverage is the relative higher then it's competitors
Select one:
a. It's proportion of variable costs will be higher.
b. The sensitivity of the firm's cash flows to market risk will be lower.
c. A lower cost of capital should be assigned.
d. It's proportion of fixed costs will be lower.
e. Beta will be higher.
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