There are two different types of financingdebt financing and equity financing. Watch the following videos to understand more about each financing type:

• What is debt financing?
• What is equity financing?

For this Discussion Board, assume that you want to open a new coffee shop. Prior to opening this new coffee shop, you need to determine the best financing option. Then, discuss the following:

• Why would debt financing be a good option for your new coffee shop?
• Whywould equity financing be a good choice to start up your new coffee shop?
• If you would like to use a combination of debt financing and equity financing, in what way would you determine the debt-equity ratio?