Compare and contrast financing with debt vs. equity.  What is being financed?

Q: Describe the Ratios that show how a firm uses debt financing?

A: Debt to Asset ratio It is a ratio that helps in measuring the company’s assets financed through the…

Q: source of finance is the middle layer between equity and debt

A: Sources of finance: The companies require finance to fund their purchase of assets and run the…

Q: What are the Components of Equity Financing

A: The method of raising capital by selling stock is referred to as equity financing. Companies raise…

Q: list and explain the most common sources of debt financing

A: When a business needs funds for working capital or for capital expenditures then, the business…

Q: Equity financing is the borrowed funds from outside sources like loans, bonds and mortgages. True or…

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

Q: What are advantages of debt financing?

A: The advantage of debt financing: Ownership remains with the person itself as when the person agrees…

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: Explain the risks of holding debt and equity from the point of view of an investor.

A: Debt investments are generally fixed yielding instruments such as bonds, company deposits, etc.…

Q: in a page long or 2 define debt and equity financing and the advantages and disadvantages of both.…

A: Applying for a loan from a lender is what debt entails. It can be temporary, long-term, or…

Q: Cash flows that result from debt and equity financing transactions,

A: Second option is wrong because one of the options is correct. Third option is wrong because…

Q: as a source o

A: What is Factoring? Factoring is a financial  method in which a specialised company (component)…

Q: A finance charge includes which elements?

A: Finance charge is a very common occurrence associated with the use of credit. For example users of…

Q: Difference between equity and debt?

A: Definition: Debt: Debt refers to the money borrowed by the borrower at a fixed interest rate. The…

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: what are the sources of debt financing?

A: debt financing: it the amount of money borrowed by he firm to run the business.

Q: What are some forms of off-balance-sheet financing?

A: Balance Sheet: Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of…

Q: Define  debt investment.

A: Debt Investment: Debt Investment considered as Lending money on loan to the issuing entity. The main…

Q: Evaluate the advantages of equity financing.

A: It is the process of selling a portion of business in exchange of  an investment in cash.It does not…

Q: Explain in detail what is debt or debt financing? Examples

A: In a debt arrangement, one party is allowed to borrow some amount from other party as per given…

Q: What is meant by debt and equity?

A: Equity:Equity is referred to as stock, specifying the interest of ownership in the entity. Equity…

Q: What does the debt to equity ratio shows, and how is it calculated?

A: Debt to equity ratio and its implication:The ratio of company’s total debt to the total…

Q: What is market debt ratio?

A: Debt ratio: The debt ratio is a financial ratio that quantifies the degree of a corporation’s…

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: 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: What are factors that affect the expected rate of return for holders of debt and equity?

A: The expected return is the return which the investors expect to receive in return from their…

Q: What is the meaning of FINANCING in the financial market?

A: Financial market is a marketplace where trading of securities takes place. Securities include bonds,…

Q: What are noncash investing and financing activities?Give one example.

A:

Q: Explain the meaning of Mezzanine finance, describing the circumstances in which it is commonly used.

A: Mezzanine finance- It refers to any unsecured subordinated debt(takes the form of preferred shares)…

Q: sources of financing through LO

A: Long term debt is a non current liability that is liable to be paid after one or more years.

Q: When is debt financing more attractive than equity financing?

A: Debt refers to the amount borrowed by one party from another party, This arrangement of borrowing…

Q: traditional debt and alternative financing instruments

A: The finance is required by the company in order to fulfill its capital requirement. The funds are…

Q: What exactly does the term FINANCING signify in the financial market

A: Introduction: In the financial market, securities are sold and bought. An investment in securities…

Q: Explain the Leverage and the Incremental Cost of Debt with example?

A: Leverage – Leverage is a financial term it means using the debt for their financial needs and…

Q: What is off–balance sheet financing?

A: To keep the debt-to-equity and leverage ratios low, companies opt to record certain liabilities and…

Q: at are the key concepts of finance

A: Step 1   Finance is a wide phrase that encompasses banking, debit, credit, capital markets, money,…

Q: Give some examples of debt financing?

A: Following are some examples of debt financing: Whereas, Debentures are a corporate or government…

Q: What do the Debt management ratios reveal?

A: Debt management ratio: Debt management ratio reveals the firm’s ability to repay the long term debts…

Q: what is the difference between investing and financing activities?

A: Cash flow statement include cash flows resulting from operating activities, investing activities and…

Q: Explain equity participation loans?

A: Equity participation loans refer to the situation where the owner or lender will reduce the interest…

Q: Which type of financial market is more prevalent: direct finance vs indirect finance. What are the…

A: Financial markets are the places and medium through which the trading (purchase and sell) of…

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: Ratios that indicate relationships between deposits, borrowed funds and equity in financing loans…

A: Efficiency ratios are those ratios which assess the company's ability to generate revenue using the…

Q: What does the debt to equity ratio show, and how is it calculated?

A: The debt-to-equity (D/E) ratio is calculatedby dividing a company's total liabilities by its…

Q: What happens to the costs of debt and equity when leverageincreases? Explain.

A: Introduction: The term leverage is nothing but using borrowed funds as a source of funding when the…