Accounting Question

Overview

For this assignment, compare and contrast the advantages and disadvantages of "equity financing" (selling stocks) vs. "bond financing" (selling bonds) for corporations. You can also search on the internet for any recent companies that have sold bonds or issue massive stocks to raise funds.

Here is one article related to Apple on 9/4/2019.

https://www.cnbc.com/2019/09/04/apple-issues-first-bonds-since-us-tax-reform.html (Links to an external site.)

Here is another article related to Tesla on 2/13/2020 :

https://www.cnbc.com/2020/02/13/why-elon-musks-surprise-2-billion-tesla-stock-deal-makes-sense.html (Links to an external site.)

Read the articles and answer these questions:

1. What are the advantages/disadvantages of equity financing vs bond financing?

2. Why did Apple issue bonds? (borrow money?)

3. Why did Tesla issue bonds and sell stocks?