Finance assignment question fairly easy please help me?

Posted on 2014-04-11 13:00:00 in Accounting by TEKKEN6

Put yourself in the shoes of the management of KATHMANDU (A company that has just recently been listed on the stock exchange through a IPO) today. You need to raise money to build a new factory in South Africa and must choose between issuing debt and issuing equity.

a.

What are the fundamental differences between these two options and what are some common methods of raising money through each?

b.

Why is debt considered more risky for KATHMANDU ?



THANK YOU SO MUCH IF YOU CAN HELP ME OUT WITH THIS QUESTION

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