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T or F If a firm uses no debt, risk of equity is financial risk, not...

T or F

If a firm uses no debt, risk of equity is financial risk, not business risk.

a. True

b. False

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Answer #1

Financial risk arise risk of using debt in firm’s capital structure. Financing requires committed and interest expense. It is not business risk.

Hence, given statement is b. False

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Answer #2

ANSWER :


False .


Debt is a financial risk. Risk of equity is a business risk. 


answered by: Tulsiram Garg
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