What are two advantages and two disadvantages of leverage


Essay Questions

1. Cash Flows (CF's) are probably one of the most important concepts and applications of finance and a company's operations. This could include not just historical CF's but forecasted ones. Discuss the importance of cash flows in finance using a real company along with an example of both a pro and con.

2. Capital Structure and Leverage play a substantial role in finance and business including the appropriate amount of debt and equity (capital structure) a company has been and should using. Discuss the importance of a company's optimal capital structure a company should maintain and why using a real example. What are two advantages and two disadvantages of leverage?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Business Management: What are two advantages and two disadvantages of leverage
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