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What are the alternatives in financing a business? |
What are the alternatives in financing a business? The company could issue new shares of stock or borrow money. The choice of the long-term financing mix is called the capital structure decision. You could break this basic distinction of debt vs. equity down further by asking whether the company should secure long-term debt financing in capital markets or borrow from a bank, if it chooses to borrow. There are also different classes of shares, e.g. common and preferred. |
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