Principles of Finance - discussion 1

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Anarggr

Economics

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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 firm’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 company’s debt and financial leverage. Your responses should include at least two peer-reviewed sources for support of your findings.

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please check attachment for required work

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Running head: Principles of Finance

Principles of Finance
Student’s Name
Institution

Principles of Finance

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Principles of Finance

Discussion
In simple language, financial leverage can be identified as the ability of a company to
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