Question: please explain Question 5 (TRUE or FALSE?) Financial risk refers to the probability that the rm will be unable to meet its xed nancing obligations
please explain

Question 5 (TRUE or FALSE?) Financial risk refers to the probability that the rm will be unable to meet its xed nancing obligations which includes both interest and preferred dividends. 0 True 0 False Question 6 (TRUE or FALSE?) If a 40% change in sales results in a 10% change in EBIT, we would say that the degree of operating leverage (DOL) is 0.25. 0 True O False Question 7 (TRUE or FALSE?) If a 5% change in sales results in a 10% change in EBIT, we would say that the degree of operating leverage (DOL) is 0.5. 0 True 0 False
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