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September 9, 2022

What is debt financing?

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For this Discussion Board, please complete the following:

There are two different types of financing—debt financing and equity financing. Watch the following videos to understand more about each financing type:

What is debt financing?https://www.youtube.com/watch?v=j3R_UFSKQUE

What is equity financing?https://www.youtube.com/watch?v=hd1fwmraHcs

For this Discussion Board, assume that you want to open a new coffee shop. Prior to opening this new coffee shop, you need to determine the best financing option. Then, discuss the following:

Why would debt financing be a good option for your new coffee shop?

Why would equity financing be a good choice to start up your new coffee shop?

If you would like to use a combination of debt financing and equity financing, in what way would you determine the debt–equity ratio?

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