Raising the money through debt will increase the riskiness

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Tim Sands the founder of the water boots Inc needs to raise $500,000 to expend his company's operations he has been told that raising the money through debt will increase the riskiness of his company much more than issuing stock he doesn't understand why this is true explain to him please respond your opinion and including details or additional information

Reference no: EM13976567

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Raising the money through debt will increase the riskiness : Tim Sands the founder of the water boots Inc needs to raise $500,000 to expend his company's operations he has been told that raising the money through debt will increase the riskiness of his company much more than issuing stock he doesn't understand..
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