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Guide: Financing Option:
Evaluate two of the options for raising additional funds: borrowing from the bank or issuing bonds, common shares, options or preferred shares. what are the advantages and disadvantages of each method of financing? what would you recommend to S&D Developments, and why? Explain S&D's options for acquiring additional equipment. In general terms, what should Steve and Deepak consider when trying to decide between leasing or buying equipment? how they determine whether a lease is a capital lease or an operating lease?