Equity capital generally provides the greatest part of a firm's financing.

Question

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Equity capital is often the most costly and risky source of financing for a firm, so most firms rely on a combination of equity and debt financing to meet their financing needs. Debt financing, which includes bank loans, bonds, and other forms of debt, is generally less expensive than equity financing and allows firms to leverage their assets and generate higher returns for their shareholders. However, equity financing can be valuable for firms that are seeking to grow rapidly, as it allows them to raise capital without taking on debt, which can limit their flexibility and increase their risk.

Equity Capital Generally Provides the Greatest Part of a Firm's