Over extending through debt financing

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Reference no: EM13976499

Please read the below comment from a student and provide a comment.

You brought up that over extending through debt financing can severely limit future cash flow and stifle growth. I think its important to realize the balance necessary to maintain a successful firm and that relying too much on anything can be a limiting factor in realizing success. Giving up too much equity can dilute a firm's ownership and limit growth just as taking on too much debt can limit growth. It is important to secure a balance in any industry.

Reference no: EM13976499

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