2) Describe how the financing decision may increase or decrease the risk of the firm. Please answer in no more than one sentence.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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2

1) Explain why securities like Australian
government bonds have had lower returns,
on average, than corporate bonds e.g. Bonds
issued by a company like Qantas. Please
answer in no more than one sentence.
2) Describe how the financing decision may
increase or decrease the risk of the firm.
Please answer in no more than one sentence.
Transcribed Image Text:1) Explain why securities like Australian government bonds have had lower returns, on average, than corporate bonds e.g. Bonds issued by a company like Qantas. Please answer in no more than one sentence. 2) Describe how the financing decision may increase or decrease the risk of the firm. Please answer in no more than one sentence.
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