Question: Question 1. (elaborate on your answers with an example) Explain what is meant by operating and nancial risk. Suppose that rm A has a greater

Question 1. (elaborate on your answers with an example) Explain what is meant by operating and nancial risk. Suppose that rm A has a greater operating risk than rm B. Is it true that rm A also has a higher cost of equity? Question 2. (elaborate your answers with an example) Why is the use of debt referred to as nancial leverage

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