Question 1. The debt and equity mix is an example of a financial ratio and indicates the extent to which borrowed funds are used to finance assets. What are the main factors that go into determing the right mix of equity and debt? IF debt is always cheaper than equity, why have equity?
Question 2. Financial Lease option
You are the owner of a start -up company that is small, but growing fast. TO support your growth, you need to purchase some long-term fixed assets. You are considering whether to buy or lease. Why might a financial lease be especially attractive for your situation.