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    Financial Management Theory and Practice Study Set 4
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    Exam 15: Capital Structure Decisions
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    Firm a Has a Higher Degree of Business Risk Than
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Firm a Has a Higher Degree of Business Risk Than

Question 75

Question 75

True/False

Firm 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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