The disadvantage of raising capital in equity markets is that the firm has to repay the money at a specific time and at a specific interest rate.

Question

Quizplus · Accepted Answer

Raising capital through equity markets does not involve repaying the money at a specific time and at a specific interest rate, unlike debt financing. Equity financing involves selling shares of the company, which does not require repayment.

The Disadvantage of Raising Capital in Equity Markets Is That