Finance

a) If a company is generating positive cash from operations and paying down debt, what stage of its life cycle is it most likely in? The 3 stages of a company's life cycle (introductory.growth, maturity) b) Name 4 factors rating agencies consider when rating a company? c) List 4 operating risks. d) You are analyzing 2 companies, and both companies have identical cost structures--each has 40% fixed costs and 60% variable costs. Company A experienced 10% revenue growth which resulted in a significant improvement in margins. Company B also experienced a 10% revenue growth, but much less improvement in margins. What conclusions can you draw regarding what was driving the revenue growth of each company? e) Discuss the difference between financial leverage and operating leverage? f) You are analyzing 2 companies, both of which experienced 8% revenue growth comprised entirely of volume growth. Company A experienced a significant improvement in margins. Company B experienced less margin improvement that Company A. What conclusions can you draw about the cost structures of the 2 companies? g) Discuss the advantages and disadvantages of issuing floating rate debt (from the borrower's standpoint). h) Should an analyst compare financial ratios between 2 firms which operate in separate industries? Why or why not? i) What interest rate should you use for a company rated BB