Abstract: The aim of this paper is discuss the possible relationship between the effects of financial risk and cost of capital and understanding the definition of financial risk and what are the main types of risks such as Objective risk, Subjective risk, Fundamental risk and Particular risk. Also the paper describe the relationship between the shareholder and specific risks in the second part of this paper discussion the identify loss exposures, analyze the loss exposure, select appropriator techniques for the loss exposure and implement and monitor the risk management program.
Keywords: financial risk cost of capital, loss exposure.
Title: The Effect of Financial Risk on the Cost of Capital
Author: Azeddin Tahir Tabani Arab
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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