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(a) 'Firms should only issue debt as it is always cheaper than equity'. Discuss this statement by comparing debt finance to alternative forms of finance.

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(a) 'Firms should only issue debt as it is always cheaper than equity'. Discuss this statement by comparing debt finance to alternative forms of finance. [70\%] (b) Discuss the methods of raising equity finance available to firms that do not dilute the control of its existing shareholders? [30\%]

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