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In: Finance

Which of the following is considered a part of financial risk?​ a. ​Demand variability b. ​Sales...

Which of the following is considered a part of financial risk?​

a.

​Demand variability

b.

​Sales price variability

c.

​The extent to which operating costs are fixed

d.

​The ability to change prices as costs change

e.

Changes in interest rates on debt​

Solutions

Expert Solution

The correct answer is option e- Changes in interest rates on Debt.

Because Financial risk is associated with the company's ability to manage its debt and finanial leverage while business risk covers the operational part like sales, price fluctuation in market etc.

jeff jeffy answered 2 years ago
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