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If a Firm Has the Lowest Possible Degree of Operating

Question 23

Multiple Choice

If a firm has the lowest possible degree of operating leverage and the lowest possible degree of financial leverage, then

A) DOL equals 1, and DFL equals 0.
B) DOL equals 0, and DFL equals 1.
C) DOL equals 1, and DFL equals 1.
D) None of the options

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