Operating and financial leverage may exist for firms

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Operating and financial leverage may exist for firms. Which of the following statements is accurate concerning leverage?

A. None of the above is accurate concerning leverage.

B. The presence of common equity creates financial leverage.

C. The presence of high levels of variable costs creates operating leverage.

D. The presence of debt creates financial leverage.

E. The presence of higher sales prices creates financial leverage.

Reference no: EM131020269

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