If fixed interest expense is present in a firm’s cost structure, so is: - 4555

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If fixed interest expense is present in a firm’s cost structure, so is:

a.financial leverage.

b.capital leverage.

c.operating leverage.

d.net operating profit after tax.

Financial leverage is a measure of how a firm is financed. It shows how much debt is being taken by the company. Interest is the payment to debt instruments.

 

Solution Description

If fixed interest expense is present in a firm’s cost structure, so is:

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