risk and returns from capital projects using standard capital asset pricing method. To demonstrate how the present values … of future cash flows are influenced by discount rates when the debt-to-equity capital structure ratio is varied between 0 … and 2.5 debt-to-equity. The breakeven sensitivity was also conducted in relation to different gross margin ratios of …

In this paper we investigate the relationship between changes in risk and changes in leverage for a panel of Swiss … banks. Using market data for risk and both accounting and market data for capital for the period between 1990 and 2002, we … find a positive correlation between changes in capital and changes in risk, i.e., higher levels of capital are associated …