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Posted on Aug 29, 2024

Imagine that you are starting a business, and you are trying to determine how much equity to invest and, correspondingly, how much debt (if any).

Imagine that you are starting a business, and you are trying to determine how much equity to invest and, correspondingly, how much debt (if any). What are two advantages and two disadvantages of introducing debt in the capital structure.

If you were starting a business, would you use debt? Why or why not?

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