Two Firms Are Completely Identical in All Aspects,except for Their

question 5

Multiple Choice

Two firms are completely identical in all aspects,except for their capital structure.Firm A is more leveraged than firm B.

• A) Firm A shows higher profit and lower risk than firm B
• B) Firm A shows higher profit and higher risk than firm B
• C) Firm A show a lower profit and a higher risk than firm B
• D) Firms A shows a lower profit and a lower risk than firm B