Debt versus equity
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Discuss how a company decides on its debt versus equity structure.
If you do not have an example from work, provide an example from your personal experiences (such as a company you have invested in or even how a family can make this decision for an individual household.)
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Solution Summary
Your response is 335 words and discusses the way we decided whether to use debt or equity for real estate ventures. Taxes are mentioned but were not a feature for the real estate ventures discussed.
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Debt versus equity
Discuss how a company decides on its debt versus equity structure.
If you do not have an example from work, provide an example from your personal experiences (such as a company you have invested in or even how a family can make this decision for an individual household.)
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Debt has certain features - such as a fixed cost and general non-involvement in affairs. It is also temporary - it will be paid back.
Equity has different features - such as flexibility to miss a year of returns but it also generally has rights to vote on governance (board of directors) and will ...
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