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  • Equity vs. Debt

Equity vs. Debt

  • Why would a company issue debt instead of equity?

  • What are some of the thing you need to think about to use debt financing? 16:58 – 18:33

  • If you can take on debt or equity within the WAC, what do you think is the cheaper source of financing and why? 39:30-40:46

  • What do you think is a cheaper form of financing: equity or debt? 23:40-24:37

  • What’s the difference between debt financing and equity financing? What is the one benefit of having debt in your capital structure? 24:37-25:17

  • How does a company's capitalist structure impact the valuation of a company? How does a valuation of a company change as the debt increases? 25:34-34:00

  • If you had two companies with the same capital structure, which company would you invest in?

  • Typically your cost of debt is cheaper than the cost of equity - why is that? 13:54-15:21

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