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Company why should issue Debentures and shares,
Which one should issue better for company and why?
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Answer Posted / vishal pandey
new firm it is better to issue shares rather
than debentures because at initial stage the company may
not be able to pay interest.whereas for an existing company
it is better to issue debentures because they may be able
to repay amount for debenture holders and then they can
utilize profits and increase their shareholders wealth.
through this process we can maintain companies EPS.
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