Question: If a companies operating leverage changed from 0.77 to 0.70 what would the answer be? Increase (causing the firm to be more risky) Decrease (causing

If a companies operating leverage changed from 0.77 to 0.70 what would the answer be?

  1. Increase (causing the firm to be more risky)
  2. Decrease (causing the firm to be less risky)
  3. Decrease (causing the firm to be more risky)
  4. Increase (causing the firm to be less risky)
  5. Remain the same (causing no change in risk)

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