As each of you may memory from your previous managerial finance courses the relationship among debt, cash flow, risk and return to the shareholder is quite important. Usually some debt financing is considered a good strategy. Deliberate in detail why this is the case. Utilize outside sources to substantiate your major points. Hint- the video in this unit will benefit you respond to the question.
In the following video Professor Judson Caskey deliberates the more recent implications of borrowing in a tight credit market