Which of the following two statements is correct? S1: The business risk of a firm is affected by the firms capital structure.

S2: The capital structure of the firm is affected by the business risk of the firm. Holding all else constant, the more business risk a firm has, the less debt it can carry in its capital structure.

Group of answer choices

S2 is correct but S1 is false

Both statements are false

S1 is correct but S2 is false

Both statements are correct