Todle, a new social media company launched 2 years ago and has seen impressive growth in users over this period of time. They are just beginning to have positive cash flow. Todle would like to raise external funds to invest in new product offerings that they believe will increase their user base and therefor their revenues. Todles executives are uncertain if they should raise fuds through debt or equity financing.

A) which do you suggest to them?

B) What are pros and cons of this strategy?

Answer rating: 100% (QA)

Answer A Based on the information provided I would suggest that Todle consider raising funds through equity financing rather than debt financing Equit... View the full answer