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Financial risk refers to the extra risk stockholders bear because of using debt as compared with the risk they would bear if no debt were

Financial risk refers to the extra risk stockholders bear because of using debt as compared with the risk they would bear if no debt were used. What does financial risk represent for stockholders?

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options:

The risk of not receiving dividends

The risk of stock value going to zero

The risk of stock price fluctuations

The risk associated with using debt to finance operations

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