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    Principles of Managerial Finance
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    Exam 13: Leverage and Capital Structure
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    With the Existence of Fixed Operating Costs, an Increase in Sales
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With the Existence of Fixed Operating Costs, an Increase in Sales

Question 168

Question 168

Multiple Choice

With the existence of fixed operating costs, an increase in sales will result in ________ increase in EBIT.


A) a proportional
B) an equal
C) a less than proportional
D) a more than proportional

Correct Answer:

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