Question
7. If a firm uses no debt, risk of equity is financial risk, not business risk. a. True b. False 8. A firm seeking financial
7. If a firm uses no debt, risk of equity is financial risk, not business risk.
a. True
b. False
8. A firm seeking financial flexibility may borrow less than the optimal level of debt .
a. True
b. False
9. Business risk refers to the extra risk stockholders bear from the use of debt as compared with the risk they would bear without debt use.
a. True
b. False
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Tidy Finance With R
Authors: Christoph Scheuch, Stefan Voigt, Patrick Weiss
1st Edition
1032389346, 978-1032389349
