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  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 13: Leverage and Capital Structure
  5. Question
    Operating Leverage Measures the Effect of Fixed Financing Costs on the Relationship
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Operating Leverage Measures the Effect of Fixed Financing Costs on the Relationship

Question 12

Question 12

Multiple Choice

Operating leverage measures the effect of fixed financing costs on the relationship between


A) sales and EBIT.
B) sales and EPS.
C) EBIT and EPS.
D) none of the above.

Correct Answer:

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