question archive Companies rely on different sources of finance to provide short-term and long-term funding needs

Companies rely on different sources of finance to provide short-term and long-term funding needs

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Companies rely on different sources of finance to provide short-term and long-term funding needs. Discuss the advantages and disadvantages of debt and equity financing sources, along with an explanation of the cost of capital for each financing source and how it should be used by management to reach an optimal capital structure

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