Your contribution to the discussion requires 1-2 paragraphs, use of proper grammar, and citing of sources. Participation in the weekly discussion provides the opportunity to learn and apply new information in manageable amounts of timely contributions, and to receive useful feedback.

Referencing textbook readings, lecture material, and current business resources briefly explain pros and cons of using debt financing.

Also, discuss types of companies that should be carrying relatively lower levels of debt (list 3-4 descriptive aspects of these firms: their size, level of volatility in sales and free cash flow, predictability of this volatility, age of the firm etc. - any features you think are important). Provide an example of a firm (or entire sector)) which should use more debt and give an example of a firm (or entire sector) for which using less debt financing would be rational.