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How is liquidity both beneficial and harmful to a firm?
Step by step
Solved in 2 steps
- What is a firm’s business risk? operating leverage? How does the operating leverage affect the firm’s business risk?What could possibly go wrong while using financial leverage? Do you think it should be utilized by a company at all?What factors contribute to the business risk of a company? What is financial risk? How do the various sources of risk affect the optimal capital structure?