Question: What is the primary difference between the leverage ratios we use in finance to judge a firm's financial performance (e.g., versus an industry average) and

What is the primary difference between the leverage ratios we use

What is the primary difference between the leverage ratios we use in finance to judge a firm's financial performance (e.g., versus an industry average) and those we use in corporate valuation (e.g. to compute a cost of capital)? Explain the difference between business risk and financial risk. How are they related? If a firm uses its WACC to evaluate all potential investment projects, what kinds of mistakes can it make? Be specific

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