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If Firm B has a higher degree of operating leverage than Firm A, which of the following situations would we expect to be true?

Firm A to have a higher expected EBIT but also a higher probability of losses

Firm B to have a higher expected EBIT but also a higher probability of losses

Firm A to have a higher expected EBIT and a lower probability of losses

Firm B to have a higher expected EBIT and a lower probability of losses

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92420785

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