Prior to beginning work on this discussion, read Chapter 16: Long-Term Debt and Lease Financing in your textbook.
Corporate debt has been increasing dramatically in recent years. Most people view debt in a negative light. However, with a little balance, debt can be beneficial. For this discussion, address the following:
- Discuss the benefits and drawbacks of corporate debt.
- Explain how financial managers can assess the company’s debt structure, and determine how reasonable it is.
- Describe the factors one should consider when deciding if a company’s debt should be increased or decreased.