D Question 7 Everything else being equal, firms that exhibit considerable volatility in sales can reduce their business risk by limiting the use of variable costs O limiting the use of fixed cost O increasing the NWC all of the above O none of the above D Question 8 Financial risk is defined as the variability in the firm's EPS, which arises when the firm's EBIT changes when the firm uses debt but not preferred stocks in its capital structure when the firm uses preferred stocks but not debt in its capital structure when the firm uses either debt or preferred stocks or both in its capital structure O none of the above