Equity raising finance

This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.

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January 24, 2021 at 7:47 am #607721
applessauce
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Sir if a company raises finance through equity and uses the full amount of that money to pay a loan

would the equity again reduce back to its original amount?
January 24, 2021 at 10:42 am #607751
John Moffat
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Why should it reduce?

Equity will increase by the amount raised.
Long term debt borrowing will reduce by the amount repaid.
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