In the U.S.,firms that need to raise capital externally,prefer to issue

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Firms in the U.S. prefer to issue debt when raising capital externally as it provides tax benefits and allows them to maintain control and ownership of their business. Additionally, interest payments on debt are typically tax-deductible, which reduces the overall cost of raising capital. Common and preferred stock involve giving ownership rights to external investors, which can dilute the control of existing shareholders, and hybrid securities are a combination of debt and equity and can be complex and difficult to price.

In the US,Firms That Need to Raise Capital Externally,prefer to Issue