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firm's business risk

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When examining a firm's financial structure, would you be concerned with the firm's business risk? Why or why not?

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This discusses the concepts related to firm's business risk.

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A firm's optimal financial structure is that mixture of debt and equity than minimizes its weighted average cost of capital (WACC). Since the after-tax cost of debt is lower than equity for many corporations, why not use debt only or mostly? It turns out that, while debt reduces a company's tax liability because interest payments are deductible ...

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