Question

Q3)​Sources of Finance State and briefly describe each type of Debt & Equity (Long Term &...

Q3)​Sources of Finance
State and briefly describe each type of Debt & Equity (Long Term & Short Term) Finance.
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Long term Debt

It refers to any debt that extend beyond a 12-month period, or beyond the current business year or operating cycle.

Short Term Debt

It refers to any debt is payable within 12-month period, or within the current business year or operating cycle.

Secured Debt

It is debt secured/backed by collateral/mortgage.

Unsecured Debt

It is debt other than secured debt.

Equity share capital

It represents the owners’ or shareholder’s investment in the business as a capital contribution.

Preferred Share Capital

The preferred stock is a type of share that often has no voting rights, but is guaranteed a cumulative dividend.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Identify and briefly describe the two primary sources of shareholders' equity.
Identify and briefly describe the two primary sources of shareholders' equity.
Describe the core principles of corporate finance. Explain: 1) the goal 2) major types of long-term...
Describe the core principles of corporate finance. Explain: 1) the goal 2) major types of long-term and short-term financial decisions 3) for each major decision, name an example.
The WACC calculation is based on : 1) The book value of all sources of long-term...
The WACC calculation is based on : 1) The book value of all sources of long-term capital 2) The book value of debt and the market value of all other sources of capital 3) The market value of equity only. 4) The market values of all sources of long-term capital 5) The book values of debt and equity only
Define the term “orbital.” Describe the shape of each type of orbital. State how many of...
Define the term “orbital.” Describe the shape of each type of orbital. State how many of each type are present, and in which energy levels they are located
long-term debt ratio = long-term debt/longterm debt + total equity Why this ratio might be of...
long-term debt ratio = long-term debt/longterm debt + total equity Why this ratio might be of interest to investors or creditors, what this ratio tells us and whether the company is performing better or worse to the prior fiscal year. --> F18 = 42% , F19 = 40%
Accounts payable $543,000 Notes Payable $247,000 current liabilities $790,000 Long term debt $1,238,000 common equity $5,141,000...
Accounts payable $543,000 Notes Payable $247,000 current liabilities $790,000 Long term debt $1,238,000 common equity $5,141,000 Total liabilities and equity $7,169,000 A. What percentage of the​ firm's assets does the firm finance using debt​ (liabilities)? B. If Campbell were to purchase a new warehouse for $1.1 million and finance it entirely with​ long-term debt, what would be the​ firm's new debt​ ratio?
Provide a real-life example of a long-term external source of finance (debt or equity issue) used...
Provide a real-life example of a long-term external source of finance (debt or equity issue) used by a blue-chip company in Hong Kong. A blue-chip company is defined as one of the listed corporations that constitute the leading stock index. In this case, the leading stock index in Hong Kong is the Hang Seng Index (HSI). In your essay, describe the nature of the financial arrangement (e.g. purpose, duration, risk assessment, etc.). In your opinion, explain whether this financial arrangement...
Briefly write about the exclusions in current maturities of long term debt with examples.
Briefly write about the exclusions in current maturities of long term debt with examples.
In our world of finance, Capital = Debt + Equity, and note debt in our context...
In our world of finance, Capital = Debt + Equity, and note debt in our context refers mainly to long term debt, Equity refers to two pieces of stock investments plus also retained earnings and its usage. So with this said how do we derive the "cost" of capital, especially focused on the concept of WACC.
Laserscope Inc. is trying to determine the best combination of short-term and long-term debt to employ...
Laserscope Inc. is trying to determine the best combination of short-term and long-term debt to employ in financing its assets. Laserscope will have $16 million in current assets and $20 million in fixed assets next year and expects operating income (EBIT) to be $4,1 million. The company's tax rate is 40% and its debt ratio is 50%. The firm's debt will be financed by an conservative policy using $6 million of short-term debt. The short-term interest rate is 7.0% and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT