To discuss about: The financial business risk, and to identify whether Firm A has a higher cost of equity capital, if it has a higher risk than Firm B Introduction: The business risk arises from the operating activities of the company, whereas, financial risk arises from the financial structure of the company.

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Chapter 16, Problem 1CRCT

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To discuss about: The financial business risk, and to identify whether Firm A has a higher cost of equity capital, if it has a higher risk than Firm B

Introduction:

The business risk arises from the operating activities of the company, whereas, financial risk arises from the financial structure of the company.

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