Bed Bath ond: The Ca ital Structure Decision 1. How would you characterize the business risk of Bed Bath 3: Beyond? Review their fmancial performance. 2. Do you think Bed Bath 3.: Beyond has too much cash? Should Bed Bath 3.: Beyond lever up? Consider both the 4D% and EG% deht-to-total capital proposals. 3. What capital structure would you recommend as appropriate for Bed Bath 5.: Beyond? How much financial risk would Bed Bath 3; Beyond face at each of the proposed levels of debt? 4. How much potential value, if any, can Bed Bath 3.: Beyond create for its shareholders at each of the proposed levels of debt? 5. How would the capital markets react to a decision by the company to increase the use of debt in the capital structure? 6. How might Bed Bath 3: Beyond implement a more aggressive capital structure policy? 1What are the alternative methods for leveraging up? 7. Given Bed Bath 6;. Beyond conservative approach, what arguments would you advance to persuade management to adopt your recommendation? It