principle of finance discussion 1 3

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Discussion Prompt #1

Holders of equity capital (common and preferred stock) are owners of the firm. There are those that argue that having equity capital benefits the organization versus debt. With the variety of debt structures available, such as angel investors, fund-raising, etc., do you believe that it is better for the organization to give up part of the ownership in the company or to seek straight debt outside the company?

Please provide original work. No plagarizing.

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