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Question 1 0 0 . 2 5 pts If a high percentage of a firm's operating costs are fixed and hence do not decline when

Question

10

0.25

pts

If a high percentage of a firm's operating costs are fixed and hence do not decline when demand falls off, this will

optimize the capital structure of the firm

decrease the firm

-

specific risk of the firm

intensify the risk borne by thefirm's common stockholders

decrease financial leverage

increase the business risk of the firm

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