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    Managerial Finance Study Set 1
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    Exam 12: Leverage and Capital Structure
  5. Question
    Operating Leverage Measures the Effect of Fixed Operating Costs on the Relationship
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Operating Leverage Measures the Effect of Fixed Operating Costs on the Relationship

Question 95

Question 95

Multiple Choice

Operating leverage measures the effect of fixed operating 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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