Risk 1: The increase in the monthly price from $9.99 to $10.99, will have no positive impact on the company free cash ow to equity (FCFE). This is true even if the number of subscribers did not decline because of the price increase. Risk 2: The xed costs that will increase from buying and renting new shows will only pay off if Netix has more customers in populated countries, to offset the number of customers lost in the US. Risk 3: The $1 billion bond issue is an additional source of risk to shareholders because it increases nancial leverage, and hence bankruptcy costs. Evaluate Mohammad's claims on the three risks. Support your answer with the required information and formulas