The CFO of Zero Motorcycles wants to recapitalize the firm. She makes the following transactions (with the approval of the board): dr Cash $100MM cr PIC (share issuance) $100MM dr Loan Payable $100MM cr Cash $100MM What is the net financial effect to the firm and why? Choose one financial effect and one reason. The firm's financial risk is unchanged. Because the firm has increased its cash obligations. The firm's financial risk has increased. The firm's financial risk has decreased. Because the firm has fewer contractual obligations to pay cash going forward. Because the firm has increased its cash stockpile