Debt is considered as cheap source of finance whereas equity is more secure. Why different companies prefer

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Debt is considered as cheap source of finance whereas equity is more secure. Why different companies prefer different capital structure? Does WACC has anything to do with performance/profitability of company?

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Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

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Posted Date: Jul 22, 2020 12:47 PM

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Debt is considered as cheap source of finance whereas equity is more secure. Why different companies prefer

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Equity is more risky hence more rate of required for equity but more equity involves risk of ownersh... View the full answer

Foundations of Financial Management

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