BUSINESS FINANCE II (İŞLETME FİNANSI II) - (İNGİLİZCE) Dersi Capital Structure soru detayı:

CEVAP:

Firms raise equity funds from their shareholders, who own a direct share of the net income and the
net worth of the company. As shareholders hold residual claims on both the earnings and the assets of
the business, they bear more risk than the creditors. Therefore, equity financing becomes more expensive than debt financing. Furthermore, as more debt is raised, the risk borne by the shareholder’s increases, leading to a higher cost of equity.