Tim Sands, the founder of Waterboots Inc., needs to raise $500,000 to expand his companys operations. He

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Tim Sands, the founder of Waterboots Inc., needs to raise $500,000 to expand his company’s operations. He has been told that raising the money through debt will increase the riskiness of his company much more than issuing stock. He doesn’t understand why this is true. Explain it to him.

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