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QUESTION

There are two types of financing available to a company when it needs to raise capital: equity financing and debt financing. Provide at least one advantage and one disadvantage of each of these financ

There are two types of financing available to a company when it needs to raise capital: equity financing and debt financing.

  1. Provide at least one advantage and one disadvantage of each of these financing options. Explain.
  2. What factors should a financial manager consider when recommending the use of equity financing or debt financing? Why?
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