The equity risk derived from a ﬁrm's capital structure policy is called _____ risk.
A) Market.
B) Systematic.
C) Extrinsic.
D) Business.
E) Financial.

Question

Quizplus · Accepted Answer

The equity risk derived from a firm's capital structure policy is called financial risk. Financial risk is the risk associated with a company's financing decisions, such as the use of debt or equity financing, and how those decisions will impact the company's overall profitability and financial standing.

The Equity Risk Derived from a ﬁRm's Capital Structure Policy