Debt financing-equity financing

Assignment Help Financial Accounting

Reference no: EM13789149

Part 1 discussion point:

Why bonds?, bond issuance (bond offering) versus stock issuance from a corporate perspective in terms of capital need. In other words, what are some of pros and cons of these two pathways of corporate financing options? One, through "Debt Financing" as opposed "Equity Financing" (ch.13 paid-in-capital of equity section of financial reporting)? Please also think about the related concept of "Financial Leverage". Please discuss ups/downs (pros and cons) between the two capital raising/structure.

Part 2 discussion point:

Now everything said and done with bonds, what is then difference between bonds and loans (bonds vs. loans as long-term debt)? Please discuss as many differences as you think of, from a corporation perspective as well as from an investor/lender perspective.

Reference no: EM13789149

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