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Weaknesses and strengths of debt financing

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What are the weaknesses and strengths of debt financing versus equity financing? How do you think a firm determines its optimal WACC?

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This explains the weaknesses and strengths of debt financing versus equity financing.

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What are the weaknesses and strengths of debt financing versus equity financing?

Issue of Equity Shares
Equity can be raised either by private placement or by public. Intel has got strong track record; thus it can use this route to raise money. It has following features:

Advantages of raising shares
? Permanent Capital: It need not be paid back
? Borrowing Base: It can be used to trade on equity
? Dividend Payment Discretion: The ...

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