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  3. Study Set
    Principles of Managerial Finance
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    Exam 13: Leverage and Capital Structure
  5. Question
    A Shift Toward More Fixed Costs Increases Business Risk, Which
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A Shift Toward More Fixed Costs Increases Business Risk, Which

Question 138

Question 138

True/False

A shift toward more fixed costs increases business risk, which in turn causes earnings before interest and taxes to increase by less for a given increase in sales.

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