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Which statement is true about the sensitivity of firm's earnings to the business cycle? a) Firms with greater amounts of fixed as opposed to variable
Which statement is true about the sensitivity of firm's earnings to the business cycle?
a) Firms with greater amounts of fixed as opposed to variable costs are less sensitive to business conditions.
b) Sales of tobacco products usually show high sensitivity to business conditions.
c) Interest payments on debt are fixed costs that decrease the sensitivity of a firm's earnings to business conditions.
d) Earnings of the companies with high operating leverage are more sensitive to the business cycle.
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