1. Discuss: Why isn't comprehebsive income comprehensible from the current issue of Strategic Finance.
2. What are the two approaches to cost of capital
3. Why would a young, fast-growing company want to take on a heavy debt load? Why might such a company prefer to carry as little debt as possible?
4. Our text describes "signaling theory." Explain that idea. How important is signaling, do you think, in making the capital structure decision?