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Consider these financial statements for SmallCo: Which company has the higher operating leverage? A. A firm that buys packaged honey from beekeepers, labels the packages
Consider these financial statements for SmallCo: Which company has the higher operating leverage? A. A firm that buys packaged honey from beekeepers, labels the packages and sells them to local stores and restaurants. B. A firm that develops Android apps on a computer and an Android phone, then sells them in the Google Play store? A Not enough information is provided to answer this question. They both have about the same leverage. B Firms A and B are comparable competitors (IE: they are "comps" of each other). A's SDI to COGS ratio is twice as big as B's ratio. Which company has the lower operating leverage? They are roughly equivalent. Not enough information is provided to answer this question. B A Firms A and B are comparable competitors (IE: they are "comps" of each other). B's Debt/Capital ratio is twice as big as A's ratio. Which company has the higher financial leverage? Not enough information is provided to answer this question. B A They are both about the same
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