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Hi, there! I have attached a case study paper. I need answers of below questions about a case study. 1. How would you characterize the

Hi, there!

I have attached a case study paper.

I need answers of below questions about a case study.

  • 1. How would you characterize the business risk of BBBY?
  • 2. Is BBBY a good candidate for increased financial leverage? What are the pros and cons of increasing the leverage of the company?
  • 3. Does BBBY really have no debt?
  • 4. Do you think BBBY has too much cash? Consider both the 40% and 80% debt-to-capital proposals: should BBBY lever up?
  • 5. What capital structure would you recommend as appropriate for BBBY?
  • 6. Do you think BBBY should recapitalize by issuing debt to buy back stock? Explain.
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