Question

Companies that have higher risk than a competitor in the same industry will generally have

Answer 1

Answer:

if one companies are at high risk than other in peer-group then that company has to do following:

1) reliable to submit an interest rate more than a competitor having a low risk

2)rate of relative stock should be less than the competitor having a low risk

3) cost of funds should be of high amount than competitor having a low risk

Explanation:

In a peer groups, companies that share the same business and are in competition with each other are added. if one companies are at high risk than other in peer-group then that company has to do following:

1) reliable to submit an interest rate more than a competitor having a low risk

2)rate of relative stock should be less than the competitor having a low risk

3) cost of funds should be of high amount than competitor having a low risk

Answer 2

To pay a higher interest rate, a lower relative stock price, and a higher cost of funds than its competitors