Which of the following is a source of financial risk of a firm? Degree of operating...

Which of the following is a source of financial risk of a firm?

Degree of operating leverage
Competitors actions
Sales price volatility
Use of debt

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Expert Solution

Use of debt

Increase of debt in capital structure is a financial risk. Debt is one the methods used to finance a project. The risk may occur in the form of default in coupon and principal payments.

jeff jeffy answered 1 year ago

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