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    Foundations of Financial Management Study Set 4
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    Exam 5: Operating and Financial Leverage
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    If Sales Units Exceeds the Break-Even Point in Units, the Firm
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If Sales Units Exceeds the Break-Even Point in Units, the Firm

Question 25

Question 25

Multiple Choice

If sales units exceeds the break-even point in units, the firm will experience


A) an operating loss.
B) an operating profit.
C) an increase in plant and equipment.
D) an increase in stock price.

Correct Answer:

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