If Firm B has a higher degree of operating leverage than Firm A, which of the following situations would we expect to be true?
Firm A to have a higher expected EBIT but also a higher probability of losses
Firm B to have a higher expected EBIT but also a higher probability of losses
Firm A to have a higher expected EBIT and a lower probability of losses
Firm B to have a higher expected EBIT and a lower probability of losses