What are the advantages and disadvantages for American Semiconductor to forgo their debt financing and take on equity financing?

American Semiconductor, Inc. is a relatively new business that "provides custom and standard processing services to fabless and IDM companies and researchers." With the deregulation of certain markets and increasing environmental concerns, the company operates in a rapidly changing business environment. The prospects of American Semiconductor's products are frequently reviewed, as with any organization, and the company's strategy is constantly analyzed. Therefore, the business decided to relinquish their debt financing and acquire equity financing; a …

…the concept of equity financing then it is not the better option rather one should go for the debt financing to keep control over the business. Reference: www.toolkit.cch.com Financial Planning Toolkit. Business Owner's Toolkit. www.business.com The Business Search Engine. "American Semiconductor, Inc Profile." www.tuff.org The University Financing Foundation. "Debt Financing." www.gov.nf.ca Financing Alternatives-Debt vs. Equity. <Tab/> <Tab/>