Under the capitalized earnings approach to business valuation, firms with lower risk factors are more valuable than those with higher risk factors

Fixed costs including depreciation have increased at Leverage, Inc. from $4 million to $6 million in an effort to reduce variable costs. What must the new variable-cost percentage be to leave break-even at $20 million?

A) 60 percent B) 75 percent C) 65 percent D) 70 percent

Generates 90% of business revenues

a. Proprietorship b. Partnership c. Corporation