Solved: The following table summarizes the percentage changes in, Finance Basics

The following table summarizes the percentage changes in

Question: The following table summarizes the percentage changes in operating income, percentage changes in revenue and betas for four pharmaceutical firms.

a. Calculate the degree of operating leverage for each of these firms.

b. Use the operating leverage to explain why these firms have different betas.

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Finance Basics: The following table summarizes the percentage changes in

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