sources of financing through LO

Q: What is Debt Management?

A: Debt is a type of borrowing which is taken by the person for specified period of time. The amount…

Q: What does Total debt include?

A: Answer: Generally, debt is an obligation imposed upon a corporation to manage its business. Total…

Q: Explain debt to equity ratio and how to calculate.

A:

Q: Compare the advantages and disadvantages of debt andequity financing, and explain the two major…

A: Debt Financing: Debt financing refers to borrowing money from outside to meet the capital…

Q: Define the term After-tax cost of debt?

A: Cost of capital is the overall cost of financing the funds from all sources of finance. The cost of…

Q: State the advantages of long-term debt financing.

A: Long Term Debt Financing: It refers to the debt financing required by the firm which usually has a…

Q: Is the relevant cost of debt, when calculating the WACC, theinterest rate on already outstanding…

A: Answer: For some decisions the embedded costs are significant but not for others. For example, when…

Q: What is a debt security?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Explain an example how to calculate debt ratio.

A: Debt Ratio: Debt ratio is the percentage of assets of the company that are procured or financed…

Q: What is the significance of a debt coverage ratio?

A: Debt service coverage ratio (DSCR) is one of the numerous financial proportions that moneylenders…

Q: b. What is the market interest rate on Coleman's debt and its component cost of debt?

A: Given: The firm tax rate is 25% The current price of coleman’s is 12% The current price of firm is…

Q: What are the differences and similarities between debt financing and equity financing?

A: Similarity between debt and equity finance. 1 Both bonds and equity are traded in market. 2 Prices…

Q: What is the difference between debt and equity financing?

A:

Q: Calculate the debt ratio

A: Debt ratio is a financial ratio which is calculated by dividing the total liabilities by the total…

Q: What are some types  of current assets that are pledged as security for short-term loans?

A: A pledged asset is collateral pledged by a borrower to a lender (usually in return for a loan). The…

Q: How to record purchase of a  debt investment? Give an example.

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: What are the two types of debt financing?

A: Debt:   A debt is an obligation that requires on entity called the debtor to pay back a borrowed sum…

Q: Differentiate equity financing from debt financing.

A: Finance is the term used for funding, raising or investing in the various business activities. For a…

Q: Define long-term debt

A:

Q: Describe the advantages of different methods of short-term debt financing.

A: Short Term Debt is also referred to as current liabilities.These are the financial obligations of…

Q: traditional debt and alternative financing instruments f

A: Entrepreneurs refer to a person who is establishing a business for taking financial risks and…

Q: Explain principal (debt)

A: Debt is the amount owed by the company for a particular period from the date of the company's…

Q: Should market or book value be used for debt and equity?

A: Book value for debt and equity represents the recorded value of the debt and equity in the company's…

Q: gs or debt) app

A: The explanation is given as,

Q: What are the advantages and disadvantages of debt financing? Of equity finacing?

A: Financing is a process of providing funds for business activities, making purchases, and investing.…

Q: Name the two types of debt financing?

A: Debt is the amount owed by the company for a particular period from the date of the company's…

Q: What is the main difference between debt and equity

A: Debt basically refers to the liability that the organization take to run their business activities…

Q: how FHA buydown loans are structured?

A: Buydown loan is a type of loan in which lower interest rate is charged to the buyer. In such type…

Q: How to calculate the appropriate interest expense based on the amount of outstanding debt using…

A: When the company borrows funds from the people, it has to pay them a certain amount for the borrowed…

Q: Is Collateralized debt obligation a good investment? Please explain in details.

A: A collateralized debt obligation also known as a CDO is a complex structured credit product which is…

Q: Describe the disadvantages of different methods of short-term debt financing.

A: Short term debt financing are also referred to as current liabilities.These are the financial…

Q: Explain the nature of long term debt.

A: Nature of long-term debt: Long-term debts are the obligations of the company that are required to…

Q: d debt percentage

A: The net rate of return is the return on an asset after expenses such as taxes, depreciation, and…

Q: Define current portion of long-term debt

A: Long-term debts are liabilities that is to be repayable in more than one year. Such liabilities are…

Q: (c)Critically evaluate the merits and demerits of using long-term debt as a source of finance as…

A: The question is based on the concept of capital structure and components of capital structure.

Q: Define secured debt

A: The term debt refers to the money taken out a loan from individuals, financial institutions, or…