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American Superconductor

What are the advantages and disadvantages for American Superconductor (AMSC) to forgo their debt financing and take on equity financing?

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One of the most important advantage for American Superconductor to forgo their debt financing would be elimination of interest burden on the debt taken by the company. By taking equity financing, company would avoid regular interest payments on the debt.

However, as the company is currently debt free (as per latest financial statements, SEC filings and Annual report), the company can take some debt to balance the debt-equity ratio. In other words, too much equity financing will ...

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What are the advantages and disadvantages for American Superconductor (AMSC) to forgo their debt financing and take on equity financing?

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