Module 7 discussion
This discussion question has two parts. Use Figure 15.7 in
your textbook which shows the net debt-to-enterprise value ratio for some
select industries to answer both parts of the question. Respond to both parts
to receive full credit for this assignment.
Part 1: Firms in the real estate investment trusts (REITs),
airlines, electric utilities, and paper products industries tend to have high
leverage. Explain why firms in these industries would prefer to have high
leverage.
Part 2: Firms in the computer hardware, footwear, apparel
and luxury goods, and data processing industries tend to have low leverage.
Explain why firms in these industries would prefer to have low leverage.
Include some news from an article that is less than a year
old that is applicable to this discussion.
The ProQuest database at the Saint Leo University Library
website can be a useful tool for completing this assignment. Click here for
instructions on accessing ProQuest.
