New equity issues are generally only a small portion of all new issues. At the same time,

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New equity issues are generally only a small portion of all new issues. At the same time, companies continue to issue new debt. Why do companies tend to issue little new equity but continue to issue new debt?

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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Question Posted: Feb 22, 2024 03:00 AM

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New equity issues are generally only a small portion of all new issues. At the same time,

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Companies often prefer to issue debt rather than equity for several reasons Cost of Capital Debt is generally considered a cheaper source of capital c...View the full answer

Corporate Finance

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