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A company president remarked, “The operations of our company are such that we can take advantage of only a minor amount of financial leverage

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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. In your replies to peers, support or refute their ideas by providing specific reasons, examples, and facts as support.

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. In replies to peers, discuss whether you agree with the risk assessment provided by the company and by your peers and explain why.