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After reviewing the material in chapter 6, please explain in your own words (not the author’s)...

After reviewing the material in chapter 6, please explain in your own words (not the author’s) the tradeoffs between equity and debt financing. First, explain what equity and debt financing are, then explain the pros and cons. Please include the effect of taxes on both equity and debt financing, and the concept of market signaling.

Book title is "Analysis for financial management" by robert c. higgins, 12th edition.

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