What are the 5 differences between debt and equity?
What's the answer for this question, is this a common question? Idk the correct 5
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The order in which holder gets paid first
The cost (cost of equity =capm while cost of debt =~bond interest rate)
The ownership given (equity is like giving up a % of the company)
What part of the balance sheet it goes to (equity is obviously in the equity section where as the credit for debt would be a liability)
And debt has to (or is expected to) be paid back at some point
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