Question: briefly explain pros and cons of using debt financing. Also, find an example of a public company that recently went through a large debt issue
briefly explain pros and cons of using debt financing.
Also, find an example of a public company that recently went through a large debt issue and/or through recapitalization. Summarize: the purpose/motivation of this move. Discuss any 3-4 descriptive aspects of this firms: size, level of volatility in sales and free cash flow, predictability of this volatility, age of the firm, profitability etc. - any features you think are important behind a financing decision made. Provide an example of a firm (or entire sector)) which should use more debt and give an example of a firm (or entire sector) for which using less debt financing would be rational.
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