DEBT FINANCING VS EQUITY FINANCING

Decision of AMSC to forgo the debt financing and take on equity financing - Advantages and Disadvantage

Decision of AMSC to forgo the debt financing and take on equity financing - Advantages and Disadvantage

Decisions whether to finance a company through debt or equity is very important, as it determines the future position of company. The decision taken by American Superconductor (AMSC) in 2003, to finance the company with equity rather than financing with debt has been under discussion since then. In this paper, advantages and disadvantages of the decision taken at that time would be ...