Please see the attached document for the questions

1. Explain the major advantages and disadvantages of debt financing. 2. Explain why increasing certainty of cash flow would improve the value of business. 3. What is liquidity risk? 4. List and explain at least three steps that can be taken to improve the liquidity risk for new ventures. 5. McGee Corporation has fixed operating costs of $10 million and a variable cost ratio of 0.65 (Variable cost / Sales). The firm has a $30 million, 10 percent bank loan. McGee's marginal tax rate is 40 percent. Sales are expected to be $80 million. i. a. Compute McGee's degree of operating leverage at an $80 million sales level. Explain the result. ii. Sales = ?? VC = Variable Cost = ?? FC = Fixed Cost = ?? EBIT = Sales - VC - FC = ?? DOL = (Sales - VC) / EBIT = ?? Explain ?? iii. b. Compute McGee's degree of financial leverage at an $80 million sales level. Explain the result. iv. EBIT = ?? Interest = ?? DFL = EBIT / (EBIT - Interest) = ?? Explain ?? v. vi. vii. viii. c. Compute MCGree's degree of combined leverage. Explain the result. DCL = DOL * DFL = ?? Explain ?? d. If sales decline to $76 million, forecast McGee's earnings per share