Define total risk as it is used in capital structure theory


1. If the Hunter Corp. has an ROE of 14 and a payout ratio of 22 percent, what is its sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Sustainable growth rate %

2. Define “total risk” as it is used in capital structure theory. How is total risk measured?

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Financial Management: Define total risk as it is used in capital structure theory
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