Verizon Communications Inc.: Capital Structure Choices

(Verizon , 2009a . Verizon was excessively fitted to pay the come forwardstanding debt of Alltel . Although , Verizon acquired a grand debt , the scholarship made Verizon the humongousst telecommunications gild in the country drum out AT T . This represents an expansion in customers and service powerfulness that would translate into revenue generation extending towards the long-term to allow Verizon to pay- strike its debt and urinate profit4 . How large , in soft or quantitative call , ar the disadvantages to this company from using debtDebt financial support also involves risks . Verizon utilize change generated from its operations to pay off its debt , particularly its short-term debt . The company s ability to pay off its debt lies in the candidate of continuous increases in its cash from operating activities , which is USD26 .2 one thousand million in 2008 up from USD25 .74 million in 2007 (Verizon 2009c . So furthest , Verizon has been able to meet its debt obligations (Verizon , 2009a . However , any d ingestturn in cash generation would pose risks to its ability to pay off its debt .

Its acquisitions that go through up most of its acquired credit may not be able to actualize the expected potential drop since competitors , especially AT T would respond to the competitive optical fusion . There are also problems in managing a large organization and Verizon already faced a number of controversies with customers inv olving products and go leading to lawsuits ! and leted contracts5 . From the qualitative trade off , does this firm looking for like it has likewise much or too undersized debtBy comparing the qualitative advantages and disadvantages , Verizon appears to have too little debt . Its debt financial backing enabled Verizon to become the largest telecommunications company in the United States . When considered on its own , this is a giant achievement when considered relative to the risk baffling in debt financing . To date , Verizon has a...If you want to get a full essay, run it on our website: OrderCustomPaper.com

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