A firms operating and financing decisions risk also, Ask an Expert

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A firm's operating and financing decisions

Risk also results from decisions made within the company. This risk is usually divided into two classes:

- Business risk is the variability in returns on assets and is affected by company's investment decisions.
- Financial risk is increased variability in returns to common stockholders as a result of using debt and preferred stock.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M9581169

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