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I have two really quick ones from an exam review. A small explanation would be great! Some...

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Finance

I have two really quick ones from anexam review. A small explanation would be great!

Some of the factorsthat can affect business risk are:

Select one:
- Possible variations in the demand for the company’s product and/orin the product’s price per unit
- Possible variations in the cost of firm’s debt
- The firm’s leverage
- All of the above

Increasing firm’sleverage:

Selectone:
- Results in higherbusiness risk
- Increases taxsubsidy on Fixed Assets´ depreciation
- Increases taxsubsidy on debt
- Never affects thefirm’s value

Answer & Explanation Solved by verified expert
3.8 Ratings (482 Votes)
Some of the factors that can affect business risk are Possible variations in the demand for the companys product andor in the products price per unit Possible variations in the cost of firms debt The    See Answer
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I have two really quick ones from anexam review. A small explanation would be great!Some of the factorsthat can affect business risk are:Select one:- Possible variations in the demand for the company’s product and/orin the product’s price per unit- Possible variations in the cost of firm’s debt- The firm’s leverage- All of the aboveIncreasing firm’sleverage:Selectone:- Results in higherbusiness risk- Increases taxsubsidy on Fixed Assets´ depreciation- Increases taxsubsidy on debt- Never affects thefirm’s value

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