Question: All else being equal, this is true about a firm with high operating leverage relative to a firm with low operating leverage: Select one: A.
All else being equal, this is true about a firm with high operating leverage relative to a firm with low operating leverage:
Select one:
A. The high operating leverage firm has more debt.
B. The debt payments limit the high operating leverage firm's opportunities to turn a big profit.
C. A higher percentage of the high operating leverage firm's costs are fixed.
D. The high operating leverage firm is exposed to less risk.
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