🔑 KEY POINTS
▪️Debt and equity are ways companies finance themselves;
▪️Too much debt can increase risk, but it's cheaper;
▪️Equity is more flexible but can dilute ownership and be more expensive;
▪️The best mix depends on the company's circumstances.
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MORE ABOUT THE MIX
💰 The mix of debt and equity is an important decision for company's financing of assets;
👀 It determines the amount of leverage and ownership;
💸 Debt financing is cheaper, but requires regular payments and can increase risk;
🍫Equity financing is more flexible but more expensive and dilutes ownership;
🤔 The optimal mix depends on factors such as industry, financial health and risk tolerance;
📈 A stable company may be able to afford more debt;
🚀 A startup may prefer more equity financing for flexibility;
💼 It's essential to consider this mix carefully to finance operations and growth while controling risk and maintaining financial elasticity.
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THE MIX IN DEPHT
🔹️The mix of debt and equity is a crucial decision for companies, as it determines how much they are relying on other’s money or their own;
🔸️Debt financing is cheaper, but requires regular payments and can increase risk;
🔷️Equity financing is more flexible but more expensive and dilutes ownership;
🔶️The optimal mix depends on factors such as industry, financial health, and risk tolerance;
🔺️A stable company may be able to afford more debt, while a 🧨startup may prefer more equity financing for flexibility;
ℹIt's essential to consider this mix
❗carefully to finance operations and growth
➡️while managing risk and maintaining financial elasticity✅
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