Which of the following correctly completes this sentence: All else the same, _____________.
A) The business risk of a firm increases when it takes on a risky project.
B) The business risk of a firm increases when it takes on more debt.
C) The financial risk of a firm decreases when it takes on a risky project.
D) The financial risk of a firm increases when it takes on more equity.
E) The higher the business risk for a firm, the higher the financial risk as well.
Correct Answer:
Verified
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