Prior to beginning work on this discussion, read Chapter 16:

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.