Question: What is the basic relationship between risk and return and how is this reflected in the value of the firm's stock? The cost of debt?

  • What is the basic relationship between risk and return and how is this reflected in the value of the firm's stock? The cost of debt?
  • What are the primary factors that should be considered when establishing a firm's capital structure?
  • What are the primary differences and/or similarities between financial risk and business risk?

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