Equities during higher interest periods on bond issues

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Generally, in economic time periods of tight money supply; interest rates on bond issues normally trend upward. This rise in interest rates creates a higher interest expense on corporate issued bond for the capital structure. Mitsubishi and other corporations could shift future capital structure funding to more equity through common stock issuances. What are the positive aspects to shifting to equities during higher interest periods on bond issues? What are the negative aspects to such a shift? Is there another alternative?

Your answer should follow the scoring guide and be at least 250 words in length. Peer reviewed journal articles always make a great defense for the position presented.

Reference no: EM13994669

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