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When a rm issues equity to raise nancial capital they are 0 selling a promise of future repayment to lenders 0 borrowing from savers 0

When a rm issues equity to raise nancial capital they are 0 selling a promise of future repayment to lenders 0 borrowing from savers 0 giving a claim on future rm prots/assets to savers O borrowing from commerical banks

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