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Pros and Cons of a Debt Financing Option

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What are the pros and cons of a debt financing option? How would you determine the right amount of debt for a company?

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Solution Summary

The pros and cons of a debt financing option are explained.

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Taking on debt means borrowing money for your business.

CONS a debt financing
- Debt means relinquishing some cash profits.

PROS a debt financing
- Major benefit for debt financing, unlike with equity financing, you'll retain full ownership of your business.
- The interest on business loans is also tax-deductible, and
- You'll ...

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