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A firm with greater operating leverage would have a higher WACC. (all else equal). True or...

A firm with greater operating leverage would have a higher WACC. (all else equal).

True or False?

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The correct answer is No

The weighted average cost of capital is affected by the financial leverage that is when the company changes the capital structure of the firm while the operating leverage is a measure of change in earning before interest and tax in comparison to change in sales .

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A firm with greater operating leverage would have a higher WACC. (all else equal). True or...
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