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Question: a company with a high degree of operating leverage should...

Question details

A company with a high degree of operating leverage should generally:

A.

use a high degree of financial leverage

B.

use a high debt ratio

C.

increase their fixed operating cost

D.

use a low degree of financial leverage

If DOL is 5 and DFL is 2, then DCL is

A.

10

B.

3

C.

7

D.

2.5

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