Operating leverage 1. Some employees prefer restricted stock over options because they receive actual shares of stock. 2. Operating leverage refers to the existence of fixed operating costs. 3. A disadvantage of interest expense over dividends is its tax deductibility. 4. If financial leverage is used, a rise in EBIT will cause a lessor rise in net income. 5. In general, new firms, growing firms, and firms perceived as growth firms will have a relatively low percentage of earnings retained. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help
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