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What is an acquisition debt?

Updated: 9/24/2023
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9y ago

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An acquisition debt is any debt used to buy, build, or improve a primary or secondary residence.

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9y ago
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At the time of acquisition of a debt investment what happens?

no journal entry required


Who receives the mortgage insurance payments?

The insurance company. Mortgage insurance premiums may be tax deductible. To qualify, the insurance policy must be for home acquisition debt on a first or second home. Home acquisition debt are loans whose proceeds are used to buy, build, or substantially improve your residence. Thus mortgage insurance policies on cash-out refinances and home equity loans won't qualify for the deduction.


What is a junk debt?

Traditionally, "junk" debt is considered a loan to a corporation that has high interest rate on the money being borrowed. Sometimes this interest is quite high- 14-18%. Junk debt financing was a major financing tool in LBOs (Leveraged Buyouts) and other corporate takeovers. The amount of junk debt is contingent on future cash flows of the company and its ability to service the debt (pay the annual interest). The junk debt has to be an integral part of the acquisition, restructuring and strategic plan for the company. The company can service its debt but eventually it will need to paid off, or pay down the debt, or restructure the debt. All is contingent on future sales and earnings and how the management (usually new) handles these particular hurdles.


What is competitive acquisition?

Competitive acquisition means to get something by fighting for it (competing).


What are the scopes of merchant banking?

Merchant Banking is commercial banking and investment banking for commercial entities, such as factoring, a forfait, placement of equity and debt, merger & acquisition etc. It is not your general bank account, credit cards or mortgages

Related questions

When is the acquisition of personal debt economically wise?

The acquisition of personal debt is wise if it results in long-term savings and security.


At the time of acquisition of a debt investment what happens?

no journal entry required


What is profit without cash in accounts?

Asset acquisition, debt reduction, distribtuions to the owner / partner(s) / sharholder(s) all represent profit. Asset acquisition, debt reduction, distribtuions to the owner / partner(s) / sharholder(s) all represent profit.


1099-A acquisition and abandonment. am I responsible for taxes?

YES YOU HAVE TO PICK THIS IS AMOUNT OF MONEY UP AS INCOME. SAME AS FORGIVEN DEBT.


Are proceeds from issuance of debt part of the financing or investing activities of a cash flow statement?

They are part of financing activities. Financing activities involve debt and equity, whereas investing activities involve the acquisition or dispostion of assets for the business.


Who receives the mortgage insurance payments?

The insurance company. Mortgage insurance premiums may be tax deductible. To qualify, the insurance policy must be for home acquisition debt on a first or second home. Home acquisition debt are loans whose proceeds are used to buy, build, or substantially improve your residence. Thus mortgage insurance policies on cash-out refinances and home equity loans won't qualify for the deduction.


What are the Methods of M and amp A financing?

Methods of M&A financing include cash payment, stock payment, debt financing, and a combination of these methods. Cash payment involves using cash reserves to fund the acquisition, while stock payment involves issuing shares of stock in the acquiring company to the target company's shareholders. Debt financing involves borrowing funds through loans or bonds to finance the acquisition.


How do you spell acquisition?

Acquisition.


Business Acquisition ?

form_title= Business Acquisition form_header= Questions about your business acquisition? Talk to the experts. What business are you acquiring?*=_ [50] What is the cost of the acquisition?*=_ [50] How long have the talks been about the acquisition?*=_ [50]


In Data acquisition system what is mean by acquisition?

'to get'


What is material acquisition mean?

Material acquisition


Where was the louisisana purchase?

The acquisition of 828,800 square miles of France's claim to the territory of Louisiana for $11,250,000 and cancelation of France's monetary debt to the US. Total cost in 2010 dollars $219 Million.