11. ESSAY Questions: use real examples and your own opinions to discuss. The length of each essay should be around one side of one page singled spaced.
A. Cash Flows (CF’s) are probably one of the most important concepts and applications of finance and a company’s operations. This could include not just historical CF’s but forecasted ones. Discuss the importance of cash flows in finance using a real company along with an example of both a pro and con.
B. Capital Structure and Leverage play a substantial role in finance and business including the appropriate amount of debt and equity (capital structure) a company has been and should using. Discuss the importance of a company’s optimal capital structure a company should maintain and why using a real example. What are two advantages and two disadvantages of leverage?