increase in the debt ratio will generally have no effect on which of these items?
A)Business risk.
B)Total risk.
C)Financial risk.
D)Market risk.
E)The firm's beta.

Name: increase in the debt ratio will generally have no effect on which of these items? A)Business risk. B)Total risk. C)Financial risk. D)Market risk. E)The firm's beta.
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Question

Quizplus · Accepted Answer

Business risk is related to the operational aspects of a company and is independent of its capital structure, so an increase in the debt ratio does not affect it.

Increase in the Debt Ratio Will Generally Have No Effect