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    Fundamentals of Financial Management Study Set 1
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    Exam 14: Capital Structure and Leverage
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    It Is Possible for Firms a and B to Have
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It Is Possible for Firms a and B to Have

Question 19

Question 19

True/False

It is possible for Firms A and B to have identical financial and operating leverage,yet for Firm A to have more risk as measured by the variability of EPS.This would occur if Firm A has more business risk than Firm B.

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