Which financial risk is defined as

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Problem 1: In a world with taxes and bankruptcy costs, the static theory of capital structure suggests that ...

Select one:

a. firm value is unaffected by the use of debt.

b. firm value increases in the use of debt.

c. firm value is maximized when WACC is minimized.

d. firm value decreases in the use of debt.

Problem 2: Financial risk is defined as

Select one:

a. the equity risk that is due to the normal business operations of the firm.

b. the equity risk that is due to capital structure of the firm.

c. investment risk in the financial market assets of the firm.

d. credit risk of the firm.

Reference no: EM132696770

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