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A firm with high operating leverage is best defined as a firm that has: Select one:
a. a high sales/assets ratio.
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Question & Answer: A firm with high operating leverage is best defined as a firm that has: Select one:…..
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b. high fixed costs relative to variable costs.
c. a low, relatively stable beta.
d. high variable costs relative to fixed costs.
e. a high debt-to-equity ratio.
Expert Answer
solution:
| A firm with high operating leverage is best defined as a firm that has: : |
| b. high fixed costs relative to variable costs. |
