12-1. (Business and financial risk) Which of following sources of new earnings volatility… 1 answer below »
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12-1. (Business and financial risk) Which of following sources of new earnings volatility demonstrates
The effect of business versus financial risk (discuss the rationale for your decisions):
a. Amos Gooding Real Estate Company recently constructed a new office building and borrowed 100 percent of the money needed to fund the project.
b. Clearing House Outsourcing has historically paid a printer to prepare all of its printed documents. However, last year the firm acquired its own printing press (paying cash)
c. Smithers Enterprises has been a specialty retail shop that sells outdoor camping equipment.
The firm recently decided to purchase a golf course.
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