A Firm with High Operating Leverage Is Best Defined as a Firm

question 76

Multiple Choice

A firm with high operating leverage is best defined as a firm that has

• A)a high debt-to-equity ratio.
• 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 sales/assets ratio.

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Definitions:

Environmental Processes

The physical, chemical, and biological actions or events that influence the environment, often affecting ecosystems and human societies.

Psychological Processes

Mental activities including thinking, perceiving, feeling, and remembering, that underlie human behavior.

Biological Functioning

The processes and activities carried out by living organisms, including humans, which maintain life and contribute to growth, reproduction, and survival.

Repetitive Transcranial Magnetic Stimulation

A noninvasive procedure using magnetic fields to stimulate nerve cells in the brain to improve symptoms of depression.