This is a critical planning and concepts review question. i, Ask an Expert

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This is a critical thinking and concepts review question. I am trying to figure out from the Essentials of corporate finance by Ross Westerfield Jordan 6e Book for my finance class.

-Explain what is meant by business and financial risk. Suppose firm A has greater business risk than firm B. Is it true that firm A also has higher cost of equity capital? Explain.

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