Wizenius

APRIL 1, 2023

When companies need to raise capital, they have two primary options: Debt involves borrowing money, while equity involves issuing shares of ownership in the company. Both options have advantages and disadvantages, and companies must carefully consider their financial situation and goals before making a decision. Let's take a look at examples of companies that raised capital through debt, and analyze the factors that influenced their decision. 1) Apple: In 2013, Apple issued a $17 billion bond to

Debt 52

Debt Equities S&P Shares 52

Wizenius

APRIL 1, 2023

Diversity in equity claims: In most of the cases of publicly traded firms with one class of shares, all equity claims on the firm are equivalent. We can simply divide the value of equity proportionately amongst the claims to derive value per claim In case of start-ups/young firms, the fact that equity is raised from private investors as against issuing shares in public market results in non-standardized equity claims Putting it simply, agreements with equity investors in different rounds of fina

DCF 52

DCF Equities Finance Finance 52