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Why is using debt financing generally less expensive than equity financing? a. What are three drawbacks to using too much debt financing? . How much

Why is using debt financing generally less expensive than equity financing?

a. What are three drawbacks to using too much debt financing?

. How much value can be added to an unleveraged firm valued at $25M if the firm reworks their balance sheet to be 50% debt financed (assuming a 30% marginal tax rate)?

. What are equivalent annual costs/cash flows (EAC)? When is it useful to calculate? Why is it useful to calculate?

There are two types of leases- a financial lease and an operating lease. What is the difference between the two?

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