High degree of operating leverage means

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Reference no: EM131964871

1. Which of the following factors do not influence the firm's P/E ratio?

A. Past earnings

B. Shares outstanding

C. Volatility in business performance

D. All of the options influence the firm’s P/E ratio.

2. A high degree of operating leverage means

A. there are high labor costs.

B. there is high debt.

C. there is a large amount of equity.

D. there are high fixed costs.

Reference no: EM131964871

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