Corporate Finance

Discussion Question 1:

What is the relationship between business risk, financial risk, and beta (systematic or market risk). Justify your answer.

Discussion Question 2:

Explain how the degree of operating and financial leverage can change the profitability of the firm when sales levels change significantly. Justify your answer.

Start reviewing and responding to at least two of your classmates’ postings as early in the week as possible. Participate in the discussion by asking a question, providing a statement of clarification, providing a point of view with a rationale, challenging an aspect of the discussion, or indicating a relationship between one or more lines of reasoning in the discussion.

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