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Leasing fixed assets instead of purchasing those assets is one form of operating leverage. According to...

Leasing fixed assets instead of purchasing those assets is one form of operating leverage. According to the DuPont Identity, an increase in operating leverage will also:

Increase the return on equity

Decrease total asset turnover

Increase the debt-to-equity ratio

Increase the return on assets

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jeff jeffy answered 2 years ago
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