Question: Does higher expected inflation increase, decrease, or have no effect on the required rate of return on bonds and stocks? (Explain how inflation impacts the

  1. Does higher expected inflation increase, decrease, or have no effect on the required rate of return on bonds and stocks? (Explain how inflation impacts the required rate of return)
  2. How does a company share its risk by issuing equity and debt?
  3. What are some of the advantages of equity financing? What are some of the disadvantages of equity financing, specifically for sports teams?

Any help would be greatly appreciated on the subject of debt and equity. Cheers

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