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    Fundamentals of Financial Management Study Set 1
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    Exam 14: Capital Structure and Leverage
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    Financial Risk Refers to the Extra Risk Borne by Stockholders
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Financial Risk Refers to the Extra Risk Borne by Stockholders

Question 41

Question 41

True/False

Financial risk refers to the extra risk borne by stockholders as a result of a firm's use of debt as compared with their risk if the firm had used no debt.

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