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Capital strucuture

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1) What is debt financing? Give at least two examples.
2) What is equity financing? Give at least two examples.
3) Which alternative capital structure is more advantageous? Why?

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Solution Summary

This explains the composition of capital strucuture and also the advantages and disadvantages

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1) What is debt financing? Give at least two examples.

The debt financing means the amount raised by borrowing money which entails fixed charges. For example Income Bonds, Bank Loan, Zero coupon bonds, convertible bonds etc.

2) What is equity ...

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