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Unexpected higher costs, caused by the firm's choice of amounts and types of debt and equity...

Unexpected higher costs, caused by the firm's choice of amounts and types of debt and equity to fund its balance sheet, is a market risk.

a. True

b. False

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Answer #1

  

_______________________________

_______________________________

Unexpected higher costs, caused by the firm's choice of amounts and types of debt and equity to fund its balance sheet, is a market risk. The above statement is absolutely correct,

Market Risk directly affect the Cost of Equity as well as Debt. It exists.

Answer - TRUE.

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