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you are the CFO and your CEO has asked you if you feel in todays rising...

you are the CFO and your CEO has asked you if you feel in todays rising interest rate world whether you would recommend issuing debt to raise money for your company.. is it likely to be (directionally) a good or bad market for it?
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Answer #1

As a CFO of the company i will advice to issue debt to raise money and it is always good for the company reasons for choosing this is listed below

1 : Debt interest save company Tax on their profit

2 : Debt/lender connot become owner of the company on the other hand if we issue equity share they will entitle to vote and lead to control over the company

3 Debt is always cheaper than equity because in debt we pay a fixed amount of interest but in equity sharing of profit in terms of dividend are there

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