Week 4: Debt vs. Equity Financing
In order for a business to undertake new endeavors there is a need for working capital. Often this capital comes in the form of the company reinvesting its own cash back into itself. However, more often the company must search for outside sources of capital in order to finance projects. Many companies resort to the traditional lines of credit extended by established financial institutions. But once projects reach the point that huge amounts of capital is needed there are other options available to the companies such as debt financing and equity financing.
What is Debt Financing?...