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Which one is best to company either debt or equity?
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Answer Posted / chetanaroopa
either debt or equity of a company depends up on 3
aspects. They r control,cost,risk.According to control
point of view debt is good for a company,and aaccording to
cost point of view equity is good and risk point of view
equity is best. According to debt equity ratio 2:1 is the
norm accepted by financial institutions for financing a
project.
DEBT EQUITY RATIO = LONG TERM DEBT
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