It is indeed a fountain of wealth but a limited one - it can remove the need for interest payments and risk of bankruptcy. The above example assumes that the share price holds steady despite dilution and the benefits of dilution stop once the debt has been paid off or the equity becomes more expensive than the debt.
It is indeed a fountain of wealth but a limited one - it can remove the need for interest payments and risk of bankruptcy. The above example assumes that the share price holds steady despite dilution and the benefits of dilution stop once the debt has been paid off or the equity becomes more expensive than the debt.
It is indeed a fountain of wealth but a limited one - it can remove the need for interest payments and risk of bankruptcy. The above example assumes that the share price holds steady despite dilution and the benefits of dilution stop once the debt has been paid off or the equity becomes more expensive than the debt.