cost and benefits on alternative sources of finance

Question 2 …found this on the net…

“Mezzanine debt is a type of borrowing by a public company in which the lender has a particularly low claim on the company’s assets in the event that it goes into liquidation before the debt is settled. In this situation, the lender’s claim will be of a lower priority to all other creditors except for holders of common stock. As a result, this type of debt tends to carry higher costs for the lender than other types of borrowing.”