iple Choices
(Choose 1 answer)
A A firm with a higher proportion of fixed costs will create
A. a higher degree of sensitivity of EBITDA to a change in revenues.
B. a lower degree of sensitivity of EBITDA to a change in revenues.
C. a firm with a much more stable net income stream as a function of revenues.
D. no discernible difference of a change in sensitivity of EBITDA to a change in revenues.
1
