Assignment 1: Risk and the Use of Leverage (Graded A+) - use as a guide only - 33996

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Assignment 1: Risk and the Use of Leverage

Answer with 150-200 words each question.

General Questions:

  1. What are the implications of a
         change in the return on equity with an increase in debt financing?


  1. What is the relationship between business risk, financial risk, and beta (systematic or market risk).


  1. Explain how the degree of operating and financial leverage can change the profitability of the firm when sales levels change significantly. Use examples and explain your answers.
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Assignment 1 risk and use of leverage.docx
Assignment 1 ri...