Should all companies use leverage to boost their valuation


Question 1. Should all companies use leverage to boost their valuation? Why or why not?

Question 2. What message does a company send to the financial markets when it changes its capital structure?

Question 3. When should companies consider advertising and a change of company name and logo in an attempt to boost corporate valuation?

Question 4. Traditionally, IPOs are priced at levels below what it is believed the market can bear. Do you think this makes sense, or are companies losing out on potential gains?

Question 5. How might the choice of financing strategy affect the performance of a company?

Question 6. Under what circumstances should companies use derivatives to hedge financial risk?

Question 7. When should you use liquidation values as opposed to going-concern terminal values for a company?

Question 8. How might the strength or weakness of a foreign economy affect the valuation of business operations of a U.S. firm in that foreign country?

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Finance Basics: Should all companies use leverage to boost their valuation
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