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Financial Risk

Hhimanipatel9y ago
Hy sir, what is the difference between financial risk and financial distress risk?
John MoffatJohn MoffatTutor9y ago#1
Financial distress risk is the risk of going bankrupt (which M&M ignore). Financial risk is the risk to shareholders resulting from the fixed interest payments on the best borrowing (which is what M&M theories are concerned about).
Hhimanipatel9y ago#2
Thank you for your help :)
John MoffatJohn MoffatTutor9y ago#3
You are welcome :-)
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