Question

In: Finance

Fluctuations in a firm's operating income represent: a. financial leverage b. the weighted average cost of...

Fluctuations in a firm's operating income represent:
a. financial leverage
b. the weighted average cost of capital
c. capital structure
d. business risk

Solutions

Expert Solution

Correct option is d. business Risk

The Fluctuations in firm’s operating income represents business risk. Business takes certain unavoidable risk which is necessary to operate and such risk is called as business risk.


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