Multiple Choice
A decrease in the use of financing that requires fixed payments will result in a(n) ________.
A) increase in financial risk
B) decrease in financial risk
C) increase in operating leverage
D) decrease in operating leverage
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q17: Due to its secondary position relative to
Q52: _ analysis is a technique used to
Q62: Financial leverage measures the effect of fixed
Q79: A firm has an operating profit of
Q131: At the operating breakeven point, _ equals
Q162: While operating leverage results only in a
Q167: Higher financial leverage causes _ to increase
Q177: The value of a firm at optimum
Q178: According to the pecking order theory,which of
Q192: The pecking order explanation of capital structure