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06-05-2024
Business

Answered

In the context of risk assessment, how does increasing financial leverage affect a company's risk profile?
a. You Answered Reduces operational risk through diversification of funding sources.
b. Correct Answer Increases both operational and bankruptcy risk due to higher fixed financial obligations.
c. Has no impact on bankruptcy risk but increases market risk.
d. Decreases financial risk by spreading operational risks across a broader base of capital.

Answer :

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