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    Foundations of Financial Management Study Set 2
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    Exam 5: Operating and Financial Leverage
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    If Sales Volume Exceeds the Break-Even Point, the Firm Will
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If Sales Volume Exceeds the Break-Even Point, the Firm Will

Question 20

Question 20

Multiple Choice

If sales volume exceeds the break-even point, the firm will experience


A) an operating loss.
B) an operating profit.
C) an increase in plant and equipment.
D) an increase in stock price.

Correct Answer:

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