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Which of the following statements about combined leverage (operating & financial) is true? If a firm employs both operating and financial leverage, any percent change
Which of the following statements about combined leverage (operating & financial) is true?
If a firm employs both operating and financial leverage, any percent change in sales will produce a larger percent change in earnings per share. | ||
A firm that is in a capital-intensive industry should use a higher level of financial leverage than a firm that employs low levels of operating leverage. | ||
Usage of both operating and financial leverage reduces a firm's risk. |
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