1. A company president remarked, “The operations of our company are such that we can take advantage of only a minor amount of financial leverage.” In your own words, define financial leverage and explain how it works to the benefit of the common shareholders. Explain the likely reasoning the company president had in mind to support this statement.
2. Obtain the latest Form 10-K for the company of your choice. Select a company that has not already been selected by one of your peers. Describe the significant risks the company identifies. Discuss whether any of these are unexpected based on your previous familiarity with the company.
Complete each question separately with references in APA format (250-300 words).