A Company with a Higher Proportion of Fixed Costs Will

question 79

Multiple Choice

A company with a higher proportion of fixed costs will create

• A) a higher degree of sensitivity of EBITDA to a change in revenues.
• B) a lower degree of sensitivity of EBITDA to a change in revenues.
• C) no discernible difference of a change in sensitivity of EBITDA to a change in revenues.
• D) a company with a much more stable profit stream as a function of revenues.

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