reply to the students responce
Do young companies use equity as a source of finance ? Why?
student responce
Young companies usually finance their company with equity,young companies/start up companies find it difficult to raise external source of capital in the form of debt because of their poor historical record does not generate credibility. There credit history about the repayment structure of the debt they have issued is not available, due to the unavailability of credit history. These companies raise equity instead of debt.
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reply to the students responceDo young companies use equity .docx
1. reply to the students responce
Do young companies use equity as a source of finance ? Why?
student responce
Young companies usually finance their company with
equity,young companies/start up companies find it difficult to
raise external source of capital in the form of debt because of
their poor historical record does not generate credibility. There
credit history about the repayment structure of the debt they
have issued is not available, due to the unavailability of credit
history. These companies raise equity instead of debt.
