Advantages of debt financing over equity financing include that interest payment on debt are tax deductible
What is debt financing?
Borrowing funds from banks, financial institutions, or other lenders (such as directors or other group companies).
When a company raises funds for working capital or capital expenditures by selling debt instruments to individuals and/or institutional investors, this is referred to as debt financing. Individuals or institutions that lend money become creditors in exchange for a promise that the principal and interest on the loan will be repaid.
What is equity financing?
Equity financing is the process of raising capital through the sale of shares. Companies raise money because they might have a short-term need to pay bills or have a long-term goal and require funds to invest in their growth. By selling shares, a company is effectively selling ownership in their company in return for cash.
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Politics is about making agreements between people so that they can live together in groups such as tribes, cities, or countries. In large groups, such as countries, some people may spend a lot of their time making such agreements.
Answer:
The correct answer is option A.
Explanation:
The dynamic model of aggregate supply and aggregate demand shows that if an economy the total spending in the economy increases faster than total production, there will be a shortage. This shortage will cause the price level to increase and will ultimately lead to inflation.
When the increase in aggregate demand is greater than the increase in aggregate supply, it will create a shortage in the economy. The demand for goods and services will be more than the supply of goods and services. This will cause the price level to increase.
Answer:
450 shares
$25
Explanation:
a 3 for 1 stock split is when 1 unit of shares is increased by 3
150 shares becomes (150 x 3) = 450
price becomes = $75/3 = $25
stock splits have no economic effect on the company and total shareholders wealth does not change
price / earnings does not change and market equity does not change
<span>A: Predated check
i hope that help</span>
