Generally in economic time periods of tight money supply int

Generally, in economic time periods of tight money supply; interest rates on bond issues normally trend upward. This rise in interest rates creates a higher interest expense on corporate issued bond for the capital structure. Mitsubishi and other corporations could shift future capital structure funding to more equity through common stock issuances. What are the positive aspects to shifting to equities during higher interest periods on bond issues?   What are the negative aspects to such a shift? Is there another alternative?

Your answer should follow the scoring guide and be at least 250 words in length. Peer reviewed journal articles always make a great defense for the position presented.

Solution

To expand, it is necessary for business owners to tap financial resources. Business owners can use varied financing resources,primarily broken into two categories, debt and equity. \"Debt\" involves borrowing money to be repaid, and interest. \"Equity\" involves raising money by selling interests in the company. .

ADVANTAGES OF DEBT

DISADVANTAGES OF DEBT