What are some advantage of issuing common stock

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DreamWorks Animation, led by billionaire Microsoft founder Paul Allen, went public in a recent year with its class A commonstock at $28 per share, raising $650 million. By the end of the first day, it was up 27 percent to $38 per share, giving the company a value of almost $1 billion. This initial enthusiasm did not last. By the end of 2007, the price was only around $25 per share. As a growing company that has produced such animated hits as Shrek and Shrek II, DreamWorks could have borrowed significant funds by issuing long-term debt.

What are some advantage of issuing common stock as opposed to bonds? What are some disadvantages?

Reference no: EM13129988

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