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Business Risk Versus Financial Risk: Explain what is meant by business and financial risk. Suppose Fir A has greater business risk than Firm B. Is it true that Firm A also has a higher cost of equity capital? Explain?

Business Risk Versus Financial Risk: Explain what is meant by business

and financial risk. Suppose Fir A has greater business risk than Firm B. Is it true that Firm A also has a higher cost of equity capital? Explain?

 
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