Why is a financial structure of a capitalization structure (a mix of equity and debt finance) being preferred in financing businesses?

Q: How can I tell if a company is financed by debt or equity?

A: here you need to know what is debt and equity debt means you're borrowing money from an outside…

Q: According to financial bep, what is the position of bep, what will be the operation if there is only…

A: Financial break even point is a point where earnings before income tax is equal to financial cost of…

Q: Which of the following is the correct statement about the inflation figure that is included in the…

A: Cost of capital is the required return necessary to make a capital budgeting project

Q: Up to what extent can debt financing be useful to the company?

A: Debt financing means raising the capital for the company in the way of selling bonds, debentures,…

Q: While determining which companies will receive capital, what information do investors and creditors…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What factors might lead a company to gain additional fundsthrough debt financing rather than through…

A: Company mainly has two type of Sources of Fund. 1. Equity Fund  2. Debt Fund.

Q: How does the financial market facilitate corporate finance and investment management needed

A: Financial market is the market in which financial instruments are sold and brought by the…

Q: Which of the following represent sources of funds to a firm: A. Creditors B. Investors C. Profitable…

A: Sources of fund refers to the source that provides the funds or supplies to the business to carry on…

Q: What information do investors and creditors need when determining which companies will receive…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What are the components of the Capital Structure of a Company? and explain the importance of Capital…

A: The capital structure is the structure of sources of funds of the company. The capital structure…

Q: Describe the strenghts and weaknesses of companies dding debt in their capital structure.

A: Debt is a financial instrument which is used by the companies to fund their business. Companies…

Q: How sources of finance allow business to build?explain

A: Finance is required in conducting every business, no business conducts its business activity…

Q: How does a company utilize stocks and bonds in financing growth? Identify the major sources of…

A: Financial capital is the money used to fund businesses and some public projects. It is made…

Q: Discuss the implications of financing through debt as they compare to financing through equity. What…

A: When a company raises capital by selling debt instruments to investors, this is referred to as debt…

Q: In terms of financing costs and profits, when should a financial manager of a firm: (a) issue new…

A: Honor Code:-- "Hi there, thanks for posting the questions. But as per our Q&A guidelines, we…

Q: Contrast and compare sources of business finance and assess various determinants of the cost of…

A: There are different financing options available to the firm. It includes, preference shares, debt,…

Q: 7.) Describe the debt and equity markets? How do organizations obtain financing from each market?…

A: Debt is considered riskless, however equity securities have some inherent risk.

Q: Why mix of equity and debt finance being preferred in financing businesses?

A: The financial structure composed of debt and equity capital is frequently preferred in the…

Q: What is income statement in business finance

A: One of financial statements of company & shows company’s revenues & expenses during…

Q: If you are a company owner, which one you choose debt financing, equity financing or a combination…

A: Finance is very important to run a business. It is very necessary to have finance to conduct day to…

Q: What is finance? Explain how this field affects all of the activities in which businesses engage

A: Finance It is defined as a field of business studies that generally deals with the management of…

Q: Which company is more reliant on equity to fund their assets based on the ratios you have? What are…

A: The Decision regarding the Capital Structure of a Company is a very important aspect. A  company can…

Q: What are the advantages and disadvantages of a company raising capital through the issuance of…

A: Equity is the owner’s share of capital in the company.  Equity share capital is the owned capital.…

Q: Your WACC formula is a simplified version for a company using only debt and equity. In a real…

A: WACC is weighted average cost of capital. It is the cost of capital of the company as per the…

Q: Evuluate options for the financing of business activities and the characteristics of the different…

A: Funds are required for initiating a project and to run and maintain business activities. Requirement…

Q: Sources of financing a business include:  Group of answer choices Raising capital owners Both…

A: Source of financing a business includes Both

Q: Which of the following is the definition of Capital Structure"? * the amount of dividends a firm…

A: Corporate finance is referred as the decision of the firm to take capital investments and other…

Q: Determining the source of finance comes under ____________________function. a. Investment Decision…

A: Liquidity management helps in estimating the revenue and costs in operating activities. Thus…

Q: a. What is a firm's cost of capital? b. Why is the company's cost of capital important in financial…

A: The Answer:

Q: Discuss how financial markets could help to finance the growth of the business. Discuss with…

A: In general, financial markets apply to any marketplace where financial instruments trading happens,…

Q: Which of the following are the ways that a company can finance the purchase of assets?   Equity…

A: the correct option with proper explanation are as follows

Q: Compare Dividend Valuation Model with Capital Asset Pricing Model in the context of calculating cost…

A: The dividend discount model and the capital asset pricing model are two methods for estimating cost…

Q: As a micro-enterprise, which sets of financing are the most likely to be used? * A. Banks and…

A: 'Micro-enterprise' is a term that is used to refer to a small business which employ less than 9…

Q: Which of the following sources of entrepreneurial financing are available to ventures that have…

A: The business which has already started the can take loan from anywhere the business which has just…

Q: A firm's capital structure can be determined by examining which parts of the firm's balance sheet?…

A: A firm capital structure is generally consist of long term debt ,preferred stock and equity . A firm…

Q: In what order will a firm pursue in acquiring internal, debt, and equity financing, if packing order…

A: There are many source of funds available to a firm to finance its short term and long term needs.…

Q: What are some factors that affect capital structure decisions made by management? What are the…

A: Capital structure is the mix of debt and equity carrying by the company. The debt and equity are…

Q: Explain how the use of more debt in the company affects return on equity (ROE).

A: ROE or Return on Equity relates to portion of equity capital invested by owner that are generally…