Question
Equity financing and Debt financing
Answer :
Word Count : 141
| Basis of Difference | Equity Financing | Debt Financing |
|---|---|---|
| Meaning | Raising capital by selling ownership shares of the business to investors. | Raising capital by borrowing funds that must be repaid with interest. |
| Return Expectation | Investors expect dividends and capital gains. | Lenders expect fixed interest payments. |
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