3. High Cost: Equity financing can be expensive. Investors typically expect a high rate of return on their investment, which can be a significant cost for companies. Additionally, the process of issuing shares and complying that have ties rules can be time-consuming and expensive.

When comparing equity financing to debt financing, it is important to consider the cost of capital, the level of control, and the risk involved. Equity financing may be more expensive, but it provides more flexibility and does not require regular payments.Seguir leyendo