Business Finance- Operating Leverage
Fill in the blanks with the appropriate answers.
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An increase in operating leverage ________ risk. |
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An increase in operating leverage ________ fixed asset turnover. |
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A decrease in financial leverage ________ risk. |
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An increase in financial leverage ________ fixed asset turnover. |
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If a firm issues bonds, financial leverage ________. |
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An increase in the successful use of financial leverage ________ the return on equity. |
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An increase in the tax rate ________ the cost of debt. |
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An increase in the use of preferred stock ________ financial leverage. |
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A decrease in the tax rate ________ the cost of preferred stock. |
A decrease in sales ________ interest expense.
