(Solution Download) If you were a finance manager in a large corporation

If you were a finance manager in a large corporation, under what circumstances might you argue that the corporation should deleverage?

Part of corporate governance involves making sure that the corporation effectively examines trade-offs involved in any future action. When corporate boards or upper managers make decisions, those decisions affect employees, customers, and shareholders. In a time of economic crisis, deleveraging, or repurchasing debt, is one possible action that a corporation may take to reduce its debt.