Regarding use of debt and equity financing, it's true that most large companies ________.

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Quizplus · Accepted Answer

Most large companies use a mix of both debt and equity financing to fund their operations and growth. This allows them to balance the benefits and risks of each type of financing and optimize their capital structure. Bond financing offers the advantage of a fixed interest rate and lower borrowing costs, but also comes with the obligation to make regular interest payments and repay the principal at the end of the bond term. Equity financing offers the advantage of not having to make regular interest payments, but also involves giving up ownership and control of the company to shareholders. By using both types of financing, companies can manage their debt levels and maintain flexibility in their capital structure.

Regarding Use of Debt and Equity Financing, It's True That