Principles of Finance I
WEEK 3: Discussion Prompt #1 – The more debt a firm uses, the greater its financial leverage, which magnifies both risk and return. Discuss the relationship between debt and financial leverage and the ratios used to analyze a firmâ€™s debt. In your response, choose a public-traded company and review their latest annual report. Provide a summary of the comments that are made regarding the companyâ€™s debt and financial leverage. Your responses should include at least two peer-reviewed sources for support of your findings.