Question
Firm A'' uses only common stock to finance investments and firm B'' also uses common stock with preferred stock to finance investments, then * A.
Firm A'' uses only common stock to finance investments and firm B'' also uses common stock with preferred stock to finance investments, then *
A. firm A and firm B both occurred financial risk
B. firm A and firm B occurred financial and operational risk both
C. only firm B occurred operational risk
D. only firm A occurred operational risk
Firms high business risk affects on revenue stability cost stability that creates ___
A. the firms financial leverage risk
B. high leverage capital structures
C.bankruptcy probability
D. ability to meet its firms operating obligations
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