cryptohunter
Active member
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How fast a company is growing affects how it decides to get money to support its expansion. Companies that are growing quickly often need a lot of money for new projects or research. They might choose to sell shares because it gives them flexibility they don't have to make fixed payments like with borrowing.
Selling shares lets them bring in money without having to pay interest, so they can use their cash for more investments.
On the otherrside, companies that are growing at a more steady pace might prefer debt. Borrowing allows them to take advantage of tax benefits from interest payments, making it a costeffective way to get funds. It helps them make more money for the owners when the return on investment is higher than the cost of borrowing.
Selling shares lets them bring in money without having to pay interest, so they can use their cash for more investments.
On the otherrside, companies that are growing at a more steady pace might prefer debt. Borrowing allows them to take advantage of tax benefits from interest payments, making it a costeffective way to get funds. It helps them make more money for the owners when the return on investment is higher than the cost of borrowing.
