Q. As each of you may recall from your previous managerial finance courses, relationship between debt, cash flow, and risk also return to shareholder is quite important. Traditionally, some debt financing is considered a good strategy. Discuss in detail (5-8 paragraphs) why this is case. Use outside sources to substantiate your major points. Hint: video in this unit will help you respond to question.
In following video, Professor Judson Caskey discusses more recent implications of borrowing in a tight credit market