cryptohunter
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Companies look at what they need and how much they want to grow. If a company is growing a lot, it might get more money from investors to expand without taking on too much debt. But if a company is already stable, it might use more debt because it can be cheaper.
How much risk a company is okay with matters too. Some companies play it safe with less debt to avoid money problems, while others take on more debt to try and make more money.
The market also affects. decisions. Things like interest rates, how the economy is doing, and what's normal in the industry all impact how much it costs for a company to get money from debt or investors. Companies look at these things to get the best deal.
How much risk a company is okay with matters too. Some companies play it safe with less debt to avoid money problems, while others take on more debt to try and make more money.
The market also affects. decisions. Things like interest rates, how the economy is doing, and what's normal in the industry all impact how much it costs for a company to get money from debt or investors. Companies look at these things to get the best deal.