business 101

1. Compare the relative costs of using long-term equity financing and those of using long-term debt financing.  Hint: What is the “cost” associated with debt financing? Are you only obligated to pay back the borrowed amount? What does a company “give up” when they use equity financing?

2. Investments can provide income, growth, and liquidity. Which factor is more important to you? Why?

answer both this question in 6-7 sentences.