(TRUE or FALSE?) Financial risk refers to the probability that the firm will be unable...
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(TRUE or FALSE?) Financial risk refers to the probability that the firm will be unable to meet its fixed financing obligations which includes both interest and preferred dividends. True False Question 6 (TRUE or FALSE?) If a 40% change in sales results in a 10% change in EBIT, we would say that the degree of operating leverage (DOL) is 0.25 . True False Question 7 (TRUE or FALSE?) If a 5% change in sales results in a 10% change in EBIT, we would say that the degree of operating leverage (DOL) is 0.5 . True False
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