Because the degree of total leverage is multiplicative and not additive, when a firm has very high operating leverage it can moderate its total risk by ________
A) increasing sales
B) using a higher level of financial leverage
C) increasing EBIT
D) using a lower level of financial leverage
D
Business
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A) 900 units. B) 1,050 units. C) 1,500 units. D) 600 units.
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