Suppose a Firm Increases the Operating Leverage Used to Produce

question 62

Multiple Choice

Suppose a firm increases the operating leverage used to produce a given quantity of output.What will this normally lead to?

• A)a decrease in the standard deviation of its expected EBIT
• B)a decrease in its business risk
• C)a decrease in the variability of its expected EPS
• D)a reduction in its fixed assets turnover ratio

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Definitions:

COUNT Aggregate Function

A function in SQL that returns the number of items in a group, often used in queries to count the number of records that match certain criteria.

Query Design View

A graphical interface in database software that allows users to design or modify queries by visually arranging tables and setting criteria.

Values

Represents the data encoded within variables or constants in programming and computing contexts.

Table Datasheet View

A view in database software that displays data in rows and columns, similar to a spreadsheet, allowing for data entry and editing.