Question: Answer both please QUESTION 7 Which factor DOES NOT affect business risk? Operating leverage Use of debt O Product obsolescence Competition QUESTION 8 Assume the

Answer both please

QUESTION 7 Which factor DOES NOT affect business risk? Operating leverage Use of debt O Product obsolescence Competition QUESTION 8 Assume the tax rate is 40%, the unlevered beta of the firm is 1, and the invested capital is $1,000,000 (200,000 of which is debt). What is the leveraged beta? 1.15 O 1.20 1.00 1.30

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