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Discuss the relative risks of debt and equity from the perspective of (i) an investor supplying funds to a firm, and (ii) the firm itself.

Discuss the relative risks of debt and equity from the perspective of (i) an investor supplying funds to a firm, and (ii) the firm itself.

Using your knowledge in this area discuss risk of debt and risk of equity, from the perspective of investors and the firm, respectively.

Note: You should show your understanding in your own words, rather than simply copying or quoting directly from the book or other sources.

(Maximum: 300 words)

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