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Leasing fixed assets instead of purchasing those assets is called operating leverage. Unlike an increase in financial leverage, however, an increase in operating leverage will
Leasing fixed assets instead of purchasing those assets is called operating leverage. Unlike an increase in financial leverage, however, an increase in operating leverage will also:
A. Decrease the profit margin
B. Decrease total asset turnover
C. Increase the debt-to-equity ratio
D. Increase the return on equity
E. Increase the return on assets
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