Debt Financing Versus Equity Financing Pros and Cons

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Debt Financing Versus Equity Financing Pros and Cons

Discuss pros and cons of using debt financing versus equity financing. Support your answer with real world examples and/or theoretical framework from the assigned readings.

Also, discuss whether or not, all else equal, firms with relatively volatile sales are able to carry relatively high debt ratios. Provide an example of a company with relatively volatile sales.