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raising funds throgh debt-equity in indian economy.
if a firm is goint to use it & after year if depression is
continue in economy & it faces inflation currently.
their is a 50-50 risk on both.
what is the right choice?
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Answer Posted / swaroop satyam .k.s
equity will be the best choice because the risk of the
company till the payment of interest on bonds is reduced so
that the company will not be in a serious position to pay
the debts off and risk in equity side will be till the
extent of investors expectations, which may lead the share
prices bit low in their market price as it is common in a
depression economy
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