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    Intermediate Financial Management
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    Exam 15: Cap Structure
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    A Has a Higher Degree of Business Risk Than Firm
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A Has a Higher Degree of Business Risk Than Firm

Question 12

Question 12

True/False

A has a higher degree of business risk than Firm B Firm A can offset this by using less financial leverage Therefore, the variability of both firms' expected EBITs could actually be identical.

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