Question
Clinton Co. has an operating leverage of 4. Sales are expected to increase by 8% next year. Operating income is a. unaffected. b. expected to
a. unaffected.
b. expected to increase by 2%.
c. expected to increase by 32%.
d. expected to increase by 4 times.
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
4th Edition
1439078084, 978-1439078082
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