Homework Clinic

Social Science Clinic => Business => Finance => Topic started by: emoedee on Aug 7, 2023

Title: Firms having positive prospects try to avoid using debt and, rather, to raise any required new ...
Post by: emoedee on Aug 7, 2023

Question 1

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.

◦ true
◦ false

Question 2

Firms having positive prospects try to avoid using debt and, rather, to raise any required new capital by other means, including selling stock.

◦ true
◦ false

Title: Firms having positive prospects try to avoid using debt and, rather, to raise any required new ...
Post by: Kevin5! on Aug 7, 2023

Answer 1

false

Answer 2

false