Question: A decrease in the level of a firm's interest expense (holding all other factors constant) would: a. c and d b. decrease financial leverage. c.

  1. A decrease in the level of a firm's interest expense (holding all other factors constant) would:

    a.

    c and d
    b.

    decrease financial leverage.
    c.

    decrease operating leverage.
    d.

    increase operating leverage.
    e.

    have no impact on operating leverage.

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