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Please assist. Thank you. Explain in detail the six reasons that may drive an organization to raise equity finance rather than debt finance. Typo Ltd

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Explain in detail the six reasons that may drive an organization to raise equity finance rather than debt finance. Typo Ltd expects a return on investment of 24% on proposed investment projects whose total cost is 5,000,0000.In order to finance these investment project the company is considering two options; Option 1; Isuve 5,000 ordinary shares at par value of 10 each. Option 2; Issue 250,000 ordinary shares at a par value of 10 each and obtain the balance via a bank loan at an interest rate of 15% per annum. The corporation tax rate is 10%. Determine the effect of the two financing options on the earnings available to the shareholders and hence advise the company of the best financing option. Explain the factors that influence the type of finance sought by a manufacturing company. Since debt capital is cheaper than equity, companies should resort to one hundred percent use of debt to finance the investment. Discuss the limitations of the above financial policy. Describe in detail the key differences between an operating lease and a financial lease. Discuss the main factors which a company should consider when determining the appropriate mix of long term and short term debt in its capital structure

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