Explanation:
The main benefit of equity financing is that funds need not be repaid. ... Since equity financing is a greater risk to the investor than debt financing is to the lender, the cost of equity is often higher than the cost of debt.
The main advantage of debt financing is that a business does not give up any control of the business as they do with equity financing.
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Answers & Comments
Explanation:
The main benefit of equity financing is that funds need not be repaid. ... Since equity financing is a greater risk to the investor than debt financing is to the lender, the cost of equity is often higher than the cost of debt.
Explanation:
The main advantage of debt financing is that a business does not give up any control of the business as they do with equity financing.