Multiple Choice
Which of the following statements is true?
A) The higher the firm's leverage,the higher the degree of sensitivity of profits to cost changes.
B) The higher the firm's leverage,the lower the degree of sensitivity of profits to cost changes.
C) The higher the firm's leverage,the higher the degree of sensitivity of profits to volume changes.
D) The higher the firm's leverage,the lower the degree of sensitivity of profits to volume changes.
Correct Answer:
Verified
Correct Answer:
Verified
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