Go to https://www.reportgallery.com and review Dell's most recent annual report. Also, go to Dell's website (https://www.dell.com) and in the section "about Dell," review the background material about Dell that relates to this chapter.
Questions
1. Some firms rely more on debt than on equity as a source of funds, which can strain their cash flow because they have to make large debt payments. Review Dell's debt versus its equity. Describe its debt level.
2. Do you think Dell relies too much on debt?
3. Dell's website describes its initial public offering in 1988, just four years after its business was created. It raised $30 million from its offering. Why do you think Dell needed to issue stock?