Why are corporations more likely to raise funds externally by debt instead of equity? Explain...

70.2K

Verified Solution

Question

Finance

Why are corporations more likely to raise funds externally by debt instead of equity?

Explain "Indirect finance is more important than direct finance" (using transaction cost theory and information asymmetric cost )

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students