With these data at hand, Bill must now complete an analysis designed to convince Todd to use some debt financing. The analysis is going to be presented in question-and-answer format, because Todd seems partial to this approach for conveying ideas. Thus, Bill’s first task was to develop the set of questions to be answered. Assume that Bill has passed the questions on to you, his assistant, for answers. Remember that Bill has a strong finance background, and Todd is an excellent businessman with good instincts. Be sure to answer the questions thoroughly and be prepared for follow-up questions.