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Which component of capital structure determines the overall financial risk? -

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प्रश्न

Which component of capital structure determines the overall financial risk?

विकल्प

  • Debt

  • Equity

  • Both (1) and (2)

  • None of these

MCQ

उत्तर

Debt

Explanation -

Debt is less expensive, but it is riskier for a firm because it requires the payment of interest and the return of principal.

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