If a Firm Has the Lowest Possible Degree of Operating

question 23

Multiple Choice

If a firm has the lowest possible degree of operating leverage and the lowest possible degree of financial leverage, then

• A) DOL equals 1, and DFL equals 0.
• B) DOL equals 0, and DFL equals 1.
• C) DOL equals 1, and DFL equals 1.
• D) None of the options