Question: A firm that uses more floating rather than fixed rate debt is likely to have cash flows that tend to decline when the interest rates

A firm that uses more floating rather than fixed rate debt is likely to have cash flows that tend to decline when the interest rates rise to be in an industry with higher business risk to use more debt in its capital structure to have cash flows that tend to increase when the interest rates rise to use less debt in its capital structure
A firm that uses more floating rather than fixed rate debt

A firm that uses more floating rather than fixed rate debt is likely to have cash flows that tend to decline when the interest rates rise to be in an industry with higher business risk to use more debt in its capital structure to have cash flows that tend to increase when the interest rates rise to use less debt in its capital structure

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