2006-09-27 16:42:05 · 5 answers · asked by njd3vils 1 in Business & Finance ➔ Investing
This is a loaded question and really can't give you a straight answer without addition information about the company. However, here is an article that have some pretty good discussions about the advantages and disadvantages of both debt vs equity financing. http://biztaxlaw.about.com/od/financingyourbusiness/a/debtvsequity.htm
A lot depending on the condition of the company. One example,,,remember the Dot Com rush? Most of that was equity financing because the companies has little or no revenue. So they could not borrow. But then, everyone was betting on the come so the companies raised billions of dollars through stocks.
2006-09-27 16:58:14 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Bonds of course as debt is a lot cheaper than equity. If you can earn a higher rate of return on Equity than the interest then you should issue bonds. Moreover, if you issue debt your ROE will increase whereas the opposite is true for issuing stock as your diluting shares.
2006-09-27 19:11:04 · answer #2 · answered by rajatharjani 4 · 0⤊ 0⤋
Stock offering for sure, if anyone is willing to buy. Bondholders own the company and the legal system will give them preference if you get into financial [court] trouble.
2006-09-27 16:46:38 · answer #3 · answered by profitmessenger 2 · 0⤊ 0⤋
stock market
2006-09-29 00:40:23 · answer #4 · answered by Anonymous · 0⤊ 0⤋
to get a educated answer to this , you might talk to your accountant and lawyer for your answer.......
2006-09-27 17:44:48 · answer #5 · answered by churchonthewayseniors 6 · 0⤊ 0⤋