Answered: explain The risk that arises due to…

explain The risk that arises due to use of debt by the firm causing variability of return for creditors and shareholders is: a.Liquidity Risk b.Call Risk c.Default Risk d.Financial Risk

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter16: Capital Structure Decisions

Section: Chapter Questions

Problem 4MC

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Question

explain

The risk that arises due to use of debt by the firm causing variability of return for creditors and shareholders is:

a.Liquidity Risk

b.Call Risk

c.Default Risk

d.Financial Risk

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