FIN 341 Upper Iowa University Financial Leverage & Capital Budgeting Discussion
1,What effect does financial leverage have on a company’s return on equity and its overall valuation? What guiding principles help managers decide on the amount of debt and equity (i.e. the capital structure) they should fund their activities with? Is there an optimal capital structure the firm should target?
2.Reflect on the course material. What are some of the the topics that you found most useful or interesting? What topics did you find most challenging?