What are the advantages and disadvantages of both debt and equity financing? XXXXXXXXXXwords APA...

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What are the advantages and disadvantages of both debt and equity financing? XXXXXXXXXXwords APA format2 outsidereferences and with properquotation and references

Robert · Accepted Answer

Advantages of Debt  
 It leads to a tax shield due to regular interest payments. 
 It can be raised without loss of control by the promoters as no equity dilution takes 
place (Damodaran, 2008). 
 Associated cost is lesser than that for equity. 
Disadvantages of Debt 
 It leads to increased solvency or bankruptcy risk as the debt taken has to be repaid 
back along with the regular interest payments (Brealey, Myers & Allen, 2008).

What are the advantages and disadvantages of both debt and equity financing? XXXXXXXXXXwords APA format 2 outsidereferences and with properquotation and references

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