A has a higher degree of business risk than Firm B Firm A can offset this by using less financial leverage Therefore, the variability of both firms' expected EBITs could actually be identical.

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The Answer of A has a higher degree of business risk than Firm B Firm A can offset this by using less financial leverage Therefore, the variability of both firms' expected EBITs could actually be identical.

A Has a Higher Degree of Business Risk Than Firm