Answer Posted / abhijeet

Debt means Borrowed Capital(debenture) from borrowers it may
be Financial Institutions, Banks, money lending companies etc.
Fixed amount of Interest is paid to its Debenture holders. &
this type of capital funding is cheaper than Equity
Equity is nothing but raising funds from general public they
have least priority and Dividend is required to be paid only
if there is profit remains for it.

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