Attempts Keep the Highest/3 1. Advantages and disadvantages of common stock financing Companies can raise funds through different forms of financing, such as debt financing and equity financing. There are advantages and disadvantages of each form of financing. Company managers evaluate the financial situation, funding needs, market conditions, and several other factors before making decisions about the form of financing to use. Based on your understanding of equity financing and its advantages and disadvantages, complete the following statements: Unlike fixed-income securities, common stock a repayment burden or a maturity date. Thus, common stock financing provides flexibility to the issuing company. If a company has than the optimal level of debt in its capital structure, common stock financing can help a firm lower the firm's weighted cost of capital. External common stock financing can lead to dilution of per-share earnings. This statement is because the number of shares outstanding which leads to initial dilution of each share