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What is financial risk?

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What is financial risk?
in Economics and Finance by ♦ Platinum (122,714 points)
reopened by ♦ | 82 views

1 Answer

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Financial risk refers to the financial leverage employed by a firm. The greater the extent to which debt in relation to equity is used to finance the firm, the greater the financial leverage the greater the financial risk. People are just worried if the Firm can pay its bills.
by ♦ Platinum (122,714 points)
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