Other things held constant, the more debt a firm uses, the lower its operating margin will be. . False
Option b is correct.
What is operating margin?
Operating margin is the ratio of operating income to net sales revenue, expressed as a percentage. Operating margin is also known as operating profit margin and return on sales. It shows how much operating income is generated from each dollar of sales revenue.A higher operating margin indicates that the company is earning enough money from business operations to pay for all of the associated costs involved in maintaining that business. For most businesses, an operating margin higher than 15% is considered good
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