Finance Discussion Questions
The more debt a firm uses, the
greater its financial leverage, which magnifies both risk and return.
Discuss the relationship between debt and financial leverage and the
ratios used to analyze a firm’s debt. Your responses should include at
least two peer-reviewed sources for support of your findings.
analysis enables stockholders, lenders, and the firm’s managers to
evaluate the firm’s financial performance. Compare and contrast who uses
financial ratios and for what purposes they use the ratios.
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