Question: #4 Financial Risk Do you think 54% return for the levered firm's shareholders is better than 30% return for the unlevered shareholders? Why? Why not?

#4 Financial Risk Do you think 54% return for the levered firm's shareholders is better than 30% return for the unlevered shareholders? Why? Why not?

#5 Inverted Yield Curve An inverted yield curve occurs when short-term interest rates are higher than long-term rates. It is often said that an inverted yield curve is a sign of coming recession. Why do you think the view makes sense? Why not?

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