What are the advantages and the disadvantages of equity finance and debt finance to a company raising finance and investors?



What are the advantages and the disadvantages of equity finance and debt finance to a company raisin..

Answer / Hari Krishna

Equity finance provides long-term capital with no fixed repayment schedule, but it dilutes ownership and control. Debt finance offers shorter-term capital with a fixed repayment schedule, but it may increase financial obligations and interest costs.

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