Multiple Choice
If a high percentage of a firm's operating costs are fixed and hence do not decline when demand falls off, this will _____.
A) decrease financial leverage
B) optimize the capital structure of the firm
C) increase the business risk of the firm
D) decrease the firm-specific risk of the firm
E) intensify the risk borne by thefirm's common stockholders
Correct Answer:
Verified
Correct Answer:
Verified
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