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Suppose you are a financial manager for a company and trying to decide how to finance some of the capital investment projects, say for $1

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Suppose you are a financial manager for a company and trying to decide how to finance some of the capital investment projects, say for $1 million. Obvious choices are either to borrow (debt) or to ask shareholders for more capital infusions (equity). What are the advantages and disadvantages of debt over equity financing? Hint: remember the ratio analysis; the effects of an increase of debt on income statement items, taxes, ROE, etc. You do not need to address all these effects

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