FIN 324 Week 3 DQs

This document of FIN 324 Week 3 Discussion Questions consists of:

1. What is the difference between operating and financial leverage? Can there be too much financial leverage in a firm? Why or why not? What is the value of common stock dependent on?
2. How do we estimate future dividends? Should a company have more debt or more equity in its capital structure? Explain
What is the value of common stock dependent on? Should a company have more debt or equity in a capital structure?

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