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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Principles of Corporate Finance

ISBN: 978-0077404895

10th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen

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