Business Finance- Operating Leverage

Fill in the blanks with the appropriate answers.

1.	An increase in operating leverage ________ risk.

2.	An increase in operating leverage ________ fixed asset turnover.

3.	A decrease in financial leverage ________ risk.

4.	An increase in financial leverage ________ fixed asset turnover.

5.	If a firm issues bonds, financial leverage ________.

6.	An increase in the successful use of financial leverage ________ the return on equity.

7.	An increase in the tax rate ________ the cost of debt.

8.	An increase in the use of preferred stock ________ financial leverage.

9.	A decrease in the tax rate ________ the cost of preferred stock.

A decrease in sales ________ interest expense.