State whether each of the following involves debt financing or equity financing:

(a) A bond issue for $3,500,000 by a city-owned utility
(b) An initial public offering (IPO) of $35,000,000 in common stock for a dot-com company
(c) $31,000 taken from your retirement account to pay cash for a new car
(d) A homeowner’s equity loan for $40,000


(a) Bonds are debt financing
(b) Stocks are always equity
(c) Equity
(d) Equity loans are debt financing, like house mortgage loans

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Fill in the blank(s) with the appropriate word(s).

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