Wednesday, April 27, 2016

Compare the relative costs of using long-term equity financing and those of using long-term debt financing

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1. Compare the relative costs of using long-term equity financing and those of using long-term debt financing.  Hint: What is the "cost" associated with debt financing? Are you only obligated to pay back the borrowed amount? What does a company "give up" when they use equity financing?



2. Investments can provide income, growth, and liquidity. Which factor is more important to you? Why?

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