Equity funding places a cost on the future earnings of the business in the form of interest payments

Name: Equity funding places a cost on the future earnings of the business in the form of interest payments
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Equity funding involves selling a portion of a company's equity in return for capital, meaning investors gain ownership shares and potentially a say in company decisions, rather than the company owing interest payments as it would with debt financing.

Equity Funding Places a Cost on the Future Earnings of the Business