What are business risk and financial risk? How does each influence the firm's capital Structure decisions? What important factors in addition to quantitative factors should a firm consider when it is making a capital structure decision? b) Describe a constant-payout-ratio dividend policy, a regular dividend policy, and a low-regular-and-extra dividend policy. What are the effects of these policies? c) Profarma shpk, an Albanian pharmaceutical company, makes a patented flu medicine that wholesales for L600. Each bottle of the medicine has variable operating costs of L400, while fixed costs are L2,000,000 per year. The firm pays L150,000 interest and preferred dividends of L40,000 per year. At this point the firm is selling 11,000 bottles of medicine per year