Which one of the following is the equity risk related to a firm's capital structure policy?
A)market
B)systematic
C)extrinsic
D)business
E)financial

Question

Quizplus · Accepted Answer

Equity risk related to a firm's capital structure policy is considered a financial risk. This is because the capital structure policy of a firm determines the amount of debt and equity financing it will use, which affects the firm's financial leverage and overall financial risk. As a result, any changes in the capital structure policy can affect the value of the firm's equity, hence the equity risk can be categorized as a financial risk. The other options listed are not directly related to a firm's capital structure policy.

Which One of the Following Is the Equity Risk Related