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Company use leasing instead of purchasing

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Reference no: EM131633451

1) "Company uses a combination of debt and equity financing but there are some advantage of using equity financing. The main thing about using equity financing is it carries no repayments obligation and that it provides extra working capital that can be used to expand company business." Which one is more expensive equity financing or debt financing?

2) When a company needs to finance its activities it can do it in two ways, using either debt or equity. There are many options in using both of them, for example, when it comes to finance a project through equity they can sell stock, create bonds or use retained earnings. Why would a company use leasing instead of purchasing?

Reference no: EM131633451

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