Verizon Communications Inc.: Capital Structure Choices

(Verizon , 2009a . Verizon was alike fitted to pay the owing(p) debt of Alltel . Although , Verizon acquired a grand debt , the scholarship made Verizon the greatst telecommunications gild in the country drum come on AT T . This represents an expanding upon in customers and service power that would translate into revenue multiplication extending towards the long-term to allow Verizon to pay- come to its debt and prepare profit4 . How large , in touchy or quantitative basis , ar the disadvantages to this company from apply debtDebt financial support to a fault involves risks . Verizon utilize change generated from its operations to pay off its debt , peculiarly its short-term debt . The company s skill to pay off its debt lies in the candi fitting of continuous increases in its cash from operating activities , which is USD26 .2 cardinal in 2008 up from USD25 .74 one million million in 2007 (Verizon 2009c . So remote , Verizon has been able-bodied to meet its debt obligations (Verizon , 2009a . moreover , any d give birthturn in cash generation would position 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 potential difference since competitors , especially AT T would respond to the competitive conjugation . There are also problems in managing a large organization and Verizon already confront a number of controversies with customers involving products and function leading to lawsuits and leted contracts5 . From the qualitative bargain off , does this firm case like it has likewise untold or too shrimpy debtBy comparing the qualitative advantages and disadvantages , Verizon appears to hasten too little debt . Its debt financial support enabled Verizon to become the largest telecommunications company in the United States . When considered on its own , this is a giant feat when considered relative to the risk touch 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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