Which of the Following Situations Would Intensify the Business Risk

Multiple Choice

Which of the following situations would intensify the business risk borne by a firm's common stockholders?

A) The firm issues new fixed-income securities, such as bonds, to raise funds to support operations.
B) The firm takes actions to stabilize its annual sales.
C) The firm starts purchasing from a supplier that allows it to renegotiate raw materials costs every six months.
D) The firm reduces its use of fixed operating costs.
E) The firm issues new common stock to raise funds.