Question

C. With regard to iridium's financial strategy, did it have the wrong target capital structure, issue the wrong kinds of capital, or issue capital in the wrong sequence? Discuss each issue of debt and likely factors resulting in terms of those debt issues
d. Why did motorola finance iridium with project debt instead of corporate

Answer 1

Explanation:

Debt capital can also have a positive effect on profitability. Debt allows companies to leverage existing funds, thereby enabling more rapid expansion than would otherwise be possible. The effective use of debt financing results in an increase in revenue that exceeds the expense of interest payments.

Answer 2

Answer:

A debt issue refers to a financial obligation that allows the issuer to raise funds by promising to repay the lender at a certain point in the future and in accordance with the terms of the contract. A debt issue is a fixed corporate or government obligation such as a bond or debenture.