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Discuss how debt financing is different from equity financing. How does debt financing effect cash flow,...

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Finance

Discuss how debt financing is different from equity financing.How does debt financing effect cash flow, taxation expenses, andthe balance sheet of a firm?

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Debt and equity are the 2 ways of raising money for a firm Both have been compared in below table Comparison Basis Equity Debt Definition Company raises fundcapital by issuing shares Company raises fundcapital by borrowing money from some other company It reflects Ownership in the company Obligation of the companny to pay back the loan What type of funds Own Funds Loan Duration Long    See Answer
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Discuss how debt financing is different from equity financing.How does debt financing effect cash flow, taxation expenses, andthe balance sheet of a firm?

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