Companies raising funds must choose either debt or equity sources, but not both.

Name: Companies raising funds must choose either debt or equity sources, but not both.
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Question

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Firms may utilize several sources and several combinations of financing. These generally include debt financing (borrowed funds), equity financing (funds acquired through the sale of company stock), and even internal sources of financing such as companies retaining their earnings.

Companies Raising Funds Must Choose Either Debt or Equity Sources