Problem:
Firm management is said to consider a number of factors when deciding its capital structure. These include:
* The degree of operating risk
* The availability of tax shelters provided by things other than debt, such as accelerated depreciation, investment tax credits and operating tax-loss carry-forwards.
* The ability of assets to support borrowing.
* Management's attitude toward the risk created by financial leverage
* Industry and Market Dynamics
For casino industry or a firm in another industry, discuss these variables and how they would influence management's assessment of the suitability of financial leverage for the firm.