What are the advantages of raising debt over equity?

4 years ago
Financial Management

You should ideally highlight how synchronous debt and equity are. Do mention:

  • Raising debt does not affect the stake of the current owner’s ownership. 
  • Debt helps in offering tax benefits to a business. 
  • Businesses with sticky revenue can enjoy higher profits even with a minor debt. 
  • Debt is cheaper than equity. 
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Sanisha Maharjan
Sanisha Maharjan
Jan 18, 2022
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