Why would a company forgo their debt financing and take on equity financing?© BrainMass Inc. brainmass.com October 16, 2018, 9:50 pm ad1c9bdddf
Investments into companies usually require both debt and equity. The optimal ratio needs to be carefully determined for each individual situation. It is unlikely that this ratio will consist of 100% equity. If the long-term prospects are so poor that a company can never make sufficient profits to benefit from ...
Why would a company forgo their debt financing and take on equity financing?
Debt Vs. Equity Financing
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?