Higher operating leverage is related to the use of additional __________.common equity financingdebt financingfixed costsvariable costs

Question

Higher operating leverage is related to the use of additional __________.common equity financingdebt financingfixed costsvariable costs
🧐 Not the exact question you are looking for?Go ask a question

Solution 1

Higher operating leverage is related to the use of additional fixed costs.

Here's why:

  1. Operating leverage refers to the proportion of fixed costs in a company's cost structure. Fixed costs are costs that do not change with the level of output, such as rent or salaries.

  2. A company with high Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

This problem has been solved

Similar Questions

Higher operating leverage is related to the use of additional __________.common equity financingdebt financingfixed costsvariable costs

.Following information are related to four firms of the same industry.Degree of Operating Leverage for Firm A is*2 points0.121.230.931.33

Describe how a financial manager could use the accounting degree of operating leverage when deciding to expand operations?

Volatility or Blank______ increases for equity holders when leverage increases.Multiple choice question.yield-to-maturityriskinevitabilitycertainty

Volatility or Blank______ increases for equity holders when leverage increases.Multiple choice question.certaintyyield-to-maturityinevitabilityrisk

1/3