Debt or equity, which is better?

Your employer has developed a business plan that calls for an aggressive growth strategy. As “cash is king” in the business world, the company will need to consider financing options. Your supervisor knows you are about to complete your business class and has asked you to research both Debt and Equity types of financing.


Write a one page paper about the differences between debt and equity financing. Also include the advantages and disadvantages of debt and equity financing. Remember that in this chapter we are learning about stocks and bonds so your paper should focus on these as finance tools.

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