Hi there!
These are our requirements for the work:
The length of your report should not
exceed 2000 words excluding tables, appendixes, and graphs. No explicit number of sources is required so you can also go beyond. Feel free to use graphs and tables as well.
Topic is as stated in the title:
Discuss the factors affecting a company’s decision to issue debt or equity in the company’s
financing decision.
Here some ideas on what the outline could look like, feel free to adjust as your the professional in this topic and you know best what should be included…
Introduction
-issue debt / equity are the ways to increase company capital
-what is debt and equity
-difference between debt and equity
Factors
-additional financial burden (no for equity, yes for debt)
-share profits and power to make decision with others (yes for equity, no for debt)
-lower debt-to-equity ratio (debt)
-lower tax amount (lower for debt as interest payed is tax deductible)
-business growth (better for equity–> wider source of capital)
Some information that we gathered in a first search include (also see attachment):
https://www.investopedia.com/ask/answers/032515/how-does-company-choose-between-debt-and-equity-its-capital-structure.asp
https://www.investopedia.com/ask/answers/042215/what-are-benefits-company-using-equity-financing-vs-debt-financing.asp
https://corporatefinanceinstitute.com/resources/knowledge/finance/debt-vs-equity/
Feel free to contact me if you have any questions! Looking forward to the first draft!