Explain briefly: 1) major benefits of using debt financing for companies; 2) reasons why firms in some industries rely more heavily on debt financing (banks, automakers) versus firms in other sectors (high-tech, pharmaceuticals). Support your answer with real world examples and/or theoretical framework from the assigned readings.

Consider this: firm with a capital needs for expansion project is considering bond financing. This firm: a) has fairly low credit rating; b) volatile operational CFs, c) new project will not generate sufficient CFs to service debt (i.e., pay interest in full) for the first three years. How would you recommend to structure this debt - to make it appealing to potential investors, yet reasonably cheap for this company? In other words, which features/terms you'd recommend adding to this bond to reduce borrowing costs and attract investors?