Which of the following statements is CORRECT? O High business risk does not mean a...

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Which of the following statements is CORRECT? O High business risk does not mean a company also has high financial risk. The degree of total leverage is caused by the fact that fixed costs do not vary proportionally with sales. O Lower operating leverage generally encourages a firm to have a lower debt ratio If a mature public firm announces that it is selling a new stock offering, the signaling theory says that a positive signal regarding the firm's future has been created The higher a firm's degree of operating leverage, the lower its breakeven point tends to be

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