Verizon Communications Inc.: Capital Structure Choices

(Verizon , 2009a . Verizon was similarly fitted to pay the awaystanding debt of Alltel . Although , Verizon acquired a grand debt , the science made Verizon the full-sizest telecommunications gild in the country drum out AT T . This represents an expansion in customers and service magnate that would translate into revenue generation extending towards the long-term to allow Verizon to pay- make its debt and mannikin profit4 . How large , in soft or quantitative hurt , 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 , curiously 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 ga zillion in 2008 up from USD25 .74 million in 2007 (Verizon 2009c . So far , Verizon has been able to meet its debt obligations (Verizon , 2009a . However , any d acceptturn 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 whitethorn not be able to actualize the expected capableness since competitors , especially AT T would respond to the competitive union . There are also problems in managing a large organization and Verizon already faced a number of controversies with customers involving products and go leading to lawsuits an d leted contracts5 . From the qualitative tr! ade off , does this firm looking for like it has likewise much or too half-size debtBy comparing the qualitative advantages and disadvantages , Verizon appears to have too little debt . Its debt pay 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 problematic 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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