"Financing, Valuation, and Rating Agencies" Coursework

"Financing, Valuation, and Rating Agencies" - Coursework Example Equity financing involves the sale of ownership right to interested partners. The money raised through equity financing is much higher than any other form of funding and is not limited or regulated (Williams, 2012). Investors can pump in money that the convenience store can overcome startup hurdles and grow in a very short period. The money contributed by investors is not returnable; thus the store will run till it breaks even so as to start the cash recovery. Shareholders bring along valuable skills and information to the convenience store. It is easier to achieve a target when different people are working towards the goal than when alone (Chandra, 2010). There are high expectations of success and responsibility as compared to debt financing. Capital raised from debt financing is limited and returnable. Expectations are low for debt financing as compared to equity funding, and collateral may limit finance required. Convenience stores are excellent avenues for revenue generation. Capital required is high as the risk of running it also stands high. With equity financing, enough money can be raised to steer off high growth and develop a consumer-oriented