Companies tend generate significant amount of free cash flow

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1. Continental Airlines once filed for bankruptcy, at least in part, as a means of reducing labor costs. Whether this move was ethical or proper was hotly debated. Give both sides of the argument.

Can you identify any similar situations where firms have taken similar action?

2. What types of companies tend to generate a significant amount of free cash flow? Is a company's free cash flow impacted by the amount of leverage that the company has?

Reference no: EM131044718

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