Read the article Leveraged for Success in the April 18, 2002, issue of Business Week. Required 1.

Question:

Read the article “Leveraged for Success” in the April 18, 2002, issue of Business Week.

Required 1. Explain why debt financing can be a less expensive alternative than equity financing.

2. What can happen if a company takes on too much debt?

3. Name five companies cited by the article that are using a high degree of leverage but still maintaining top credit ratings.

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