Question

In using Verizon Communications Inc's 2017 to 2019 (2020) SEC 10K Annual Financial Statements Reports (Balance...

In using Verizon Communications Inc's 2017 to 2019 (2020) SEC 10K Annual Financial Statements Reports (Balance Sheet, Income Statement and Cash Flow Statement) describe Verizon's Capital Structure and Financing Decisions.

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Answer #1

Verizon capital structure is combined with a large proportion of the debt capital to the overall capital structure and its capital is almost including 69% of the capital structure where as capital structure is combined of 31% of the equity share so it can be said that Verizon is having a significant exposure to the debt capital and it is having a significant proportion of leverage in its overall capital structure which is affecting the performance of the company to large extent.

Financing decision of Verizon has constantly been towards use of debt capital in order to enhance the effectiveness of the organisation by lowering the overall cost of operations and it is also trying to maximize its overall growth on the basis of the debt capital but it has a lot of solvency problem associated with it because that is consisting of a significant portion of its overall capital structure.

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