31-03-2011, 05:26 PM
Let me try to offer my 2cents. For me I probably won't look at it this way, but rather:
- Perception of interest rate over tenure of required debt. Equity on the other hand, is infinitely timed
- Amount that need to be raised, and how it may affect the company's ROE, gearing, etc
- Assets which may be collaterised to take on debt where cash call doesn't require
- Impact to future cashflow if taking debt, compared to normal equity raising
- Perception of interest rate over tenure of required debt. Equity on the other hand, is infinitely timed
- Amount that need to be raised, and how it may affect the company's ROE, gearing, etc
- Assets which may be collaterised to take on debt where cash call doesn't require
- Impact to future cashflow if taking debt, compared to normal equity raising