Leverage and Default Risk in a Business: Problems and Solutions | Accounting

Here is a list of top three problems on leverage and default risk in a business with its relevant solutions. Problem 1: A company needs to deploy Rs.80 million. It may be financed in different combination of D/E, namely: (i) D/E = 0, fully equity financed, (ii) D/E = 2, and (iii) D/E = 3. Two issues the company encountered [...]