4. Firms do not think they should raise money through equity issue (share issuance) just because it is risky to borrow money. This is because of several reasons. First of all, in terms of cost,

-share issuancedebtown cashflowis considered to be the most costly among financing options. Meanwhile, higher resulting from more borrowing allows firms to control more assets with a certain amount of shareholders' equity. This is important, because issue of new shares results in the of existing shareholders' rights. Moreover, increased borrowing will flatter and also allows firms to pay less

4. Firms do not think they should raise money through equity issue (share issuance) just because it is risky to borrow money. This is because of several reasons. First of all, in terms of cost, vis considered to be the most costly among financing options. Meanwhile, higher | resulting from more borrowing allows firms to control more assets with a certain amount of shareholders' equity. This is important, because issue of new shares results in the of existing shareholders' rights. Moreover, increased borrowing will flatter and also allows firms to pay less - 4. Firms do not think they should raise money through equity issue (share issuance) just because it is risky to borrow money. This is because of several reasons. First of all, in terms of cost, considered to be the most costly among financing options. Meanwhile, higher share issuance resulting from more borrowing allows firms to control more assets with a ireholders' equity. This is important, because issue of new shares results in the debt of existing shareholders' rights. Moreover, increased borrowing will flatter own cashflow and also allows firms to pay less