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What are the trade-offs between different sources of capital

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Question: To raise capital, corporate officers have two basic sources of funding from which to choose: (1) debt (i.e., issuing bonds, taking out a loan) or (2) equity (i.e., issuing more stock). What are the trade-offs between these two very different sources of capital? Consider tax and nontax factors.

Please provide at least 200 words with references.

Reference no: EM131994467

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