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It is commonly understood that the cost of financing a business's asset purchases with debt is cheaper than financing those purchases with equity. Briefly discuss
It is commonly understood that the cost of financing a business's asset purchases with debt is cheaper than financing those purchases with equity. Briefly discuss why debt financing is cheaper than equity financing. Is there a set of circumstances when the cost of debt financing would exceed the cost of equity financing? If so, when? Please provide a long explanation.
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