Is finance additional investments through the capital increase is better than relying on borrowing?

Some mistakenly believe that the financing of investments through the capital increase is better than borrowing from banks or issuing bonds because it does not bear directly benefits the paid-up capital but in fact that funding through borrowing may be better than another angle because it lowers the cost of funding because debt burdens shall be exempt from the tax, however, this feature may Ataatovr in the event that the company is enjoying exemption tax in addition to the expansion in borrowing leads to higher financial risk from the standpoint of the lending bodies and so are motivated to raise the interest rate in the case of a request new loans as well as the expansion in borrowing displays the company for bankruptcy as an increase in the debt means higher interest due burden and that requires the need to greater money management to repay the debt when it is maturity that is, it really can not say for sure that the reliance on property rights or fund additional investments through capital increase better than relying on borrowing or vice versa because they both have advantages and disadvantages, and until they are to benefit from the advantages of both of them and avoid Aaoppema to be a combination of exporters work together so as to reduce financing costs to the maximum degree.

it all depends on interest rates so the cost of credit (Earned Value Management) 

and value of company in stock exchange

Borrowing is better.

1. You’ll owe the lender or lenders a fixed amount of money at predetermined dates

2. your interest expenses are tax deductible

3. you’ll give up no control over the actual management of the firm.

4. owners get to keep any extra profits generated by the debt capital

I agree with Mr. George answer

Debt financing is always cheaper as interest payment through in debt financing results in tax saving, this method is always cheaper in taxable zone areas.

Equity financing is always expensive as it results in insecurity among shareholders hence resulting in devaluation of share price.