The difference between equity and debt financing. Introduction: Equity financing refers to a method of raising finance by selling entity’s stock to investors whereas debt financing refers to a method of raising finance from any financial institution which is to be repaid along with interest.

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Chapter 18.3, Problem 8TP

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To discuss: The difference between equity and debt financing.

Introduction: Equity financing refers to a method of raising finance by selling entity’s stock to investors whereas debt financing refers to a method of raising finance from any financial institution which is to be repaid along with interest.

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