Question: ABC and DEF both operate in the same sectorr with the same degree of operating leverage. ABC has a capital structure of 40% debt and
ABC and DEF both operate in the same sectorr with the same degree of operating leverage. ABC has a capital structure of 40% debt and 60% equity, while DEF is financed completely by equity. Which of the following statements is most accurate? Compared to DEF, ABC has:
Group of answer choices:
a lower sensitivity of net income to changes in unit sales
the same sensitivity of operating income to changes in unit sales
the same sensitivity of net income to changes in operating income
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