Suppose that the expected variable costs of Otobais project are 33 billion a year and that fixed
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Suppose that the expected variable costs of Otobai’s project are ¥33 billion a year and that fixed costs are zero. How does this change the degree of operating leverage? Now recomputed the operating leverage assuming that the entire ¥33 billion of costs are fixed.
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Related Book For
Principles of Corporate Finance
ISBN: 978-0077404895
10th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
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