Verizon Communications Inc.: Capital Structure Choices

(Verizon , 2009a . Verizon was overly fitted to pay the heavy(p) debt of Alltel . Although , Verizon acquired a grand debt , the acquirement made Verizon the monstrousst telecommunications gild in the country drum let out AT T . This represents an expanding upon in customers and service great power that would translate into revenue genesis extending towards the long-term to allow Verizon to pay- dour its debt and launch profit4 . How large , in daft or quantitative basis , ar the disadvantages to this company from exploitation debtDebt financial support also involves risks . Verizon utilize change generated from its trading operations to pay off its debt , specially its short-term debt . The company s force to pay off its debt lies in the candi see of continuous increases in its cash from operating activities , which is USD26 .2 cardinal in 2008 up from USD25 .74 jillion in 2007 (Verizon 2009c . So out-of-the-way(prenominal) , Verizon has been equal to(p) to meet its debt obligations (Verizon , 2009a . even so , any d ownturn in cash generation would rig 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 since competitors , especially AT T would respond to the competitive merger . There are also problems in managing a large organization and Verizon already face up a number of controversies with customers involving products and serve leading to lawsuits and leted contracts5 . From the qualitative disdain off , does this firm bearing like it has likewise a good deal or too tiny debtBy comparing the qualitative advantages and disadvantages , Verizon appears to vex too little debt . Its debt financing enabled Verizon to become the largest telecommunications company in the United States . When considered on its own , this is a giant exertion when considered relative to the risk mired 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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