2 1) Explain why securities like Australiangovernment bonds have had lower returns,on average, than corporate bonds e.g. Bondsissued by a company like Qantas. Pleaseanswer in no more than one sentence.2) Describe how the financing decision mayincrease or decrease the risk of the firm.Please answer in no more than one sentence.

The financing decision involves two options: using the company's own cash, such as share capital or…

Answered: 2) Describe how the financing decision…

2) Describe how the financing decision may increase or decrease the risk of the firm. Please answer in no more than one sentence.

Foundations of Business - Standalone book (MindTap Course List)

4th Edition

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter15: Using Management And Accounting Information

Section: Chapter Questions

Problem 5DQ

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Question

1) Explain why securities like Australian
government bonds have had lower returns,
on average, than corporate bonds e.g. Bonds
issued by a company like Qantas. Please
answer in no more than one sentence.
2) Describe how the financing decision may
increase or decrease the risk of the firm.
Please answer in no more than one sentence.

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