Given the costs and benefits of a company choosing to finance with debt versus equity; what type

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Given the costs and benefits of a company choosing to finance with debt versus equity; what type of company would be best off with a highly levered capital structure (i.e., mostly debt)? On the other hand, what type of company would be best off to avoid leverage and finance itself with mostly equity? Provide a short answer, between a half-page to one page total, and describe what characteristics of companies would lead them to choose one capital structure versus the other. Please help me with this short answer response question by not only answering the prompted question but also explaining in detail the definition of this type of company.

Posted Date: Sep 09, 2021 09:26 PM

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Given the costs and benefits of a company choosing to finance with debt versus equity; what type

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ANSWER STEP 1 Debt vs Equity Financing which is best for your business and why The simple answer is ... View the full answer

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