A fast-growing tech startup with low current revenue but high future potential needs capital. Why might its CFO choose to issue common shares over debt despite the dilution of control?

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Equity is safer for a company with low revenue because dividends are discretionary, whereas debt requires mandatory interest payments that could lead to bankruptcy if revenue stays low.

A fast-growing tech startup with low current revenue but high future potential needs capital. Why might its CFO choose to issue common shares over debt despite the dilution of control?

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