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Shareholder loans are debt
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∙ 10y ago
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What is the formula of leverage ratios?
One measure of leverage is Debt (or Liabilities) divided by Equity. The higher the figure, the greater is the leverage or reliance on debt to create shareholders equity.
Is a home equity loan considered a long term debt?
Yes. Home equity loans are generally ten-year loans. Any loan lasting longer than one year is considered a long-term debt.
What sort of collateral is required by people applying for debt consolidation home equity loans?
There are a lot of kind of collateral which is required by people who are applying for debt consolidation home equity loans. However, in most cases, one is required to get approved on the action.
What is the difference between refinance and home equity loans?
Both refinancing and home equity loans release finance from the equity a person holds in their property. The difference that a loan is taken out based on the amount of debt owed on the property against the value if it was sold, but is separate form your mortgage. Refinancing will replace your current mortgage with a new one. Equity Loans generally carry a higher rate of interest that a mortgage.
Debt equity ratio tells about what?
debt equity ration
What is financial gearing?
It is the relationship between shareholders equity and fixed interest debt.
What is the formula of leverage ratios?
One measure of leverage is Debt (or Liabilities) divided by Equity. The higher the figure, the greater is the leverage or reliance on debt to create shareholders equity.
Who is last in line for the payment of profits?
Equity shareholders are the last in line for the payment of profits, after all other stakeholders such as debt holders and preferred shareholders have been paid. Equity shareholders only receive dividends after all other obligations have been met.
Is a home equity loan considered a long term debt?
Yes. Home equity loans are generally ten-year loans. Any loan lasting longer than one year is considered a long-term debt.
What sort of collateral is required by people applying for debt consolidation home equity loans?
There are a lot of kind of collateral which is required by people who are applying for debt consolidation home equity loans. However, in most cases, one is required to get approved on the action.
Do banks take less money on home equity loans to clear the debt faster?
Hello
What is the other name for a shareholders equity?
stockholder's equity
A firm has a long-term debt-equity ratio of .4 Shareholders equity 1 million. Current assets 200000 and current ratio is 2.0. The only current liabilities are notes payable. Total debt ratio is?
not provided, as the information given does not include the total debt amount.
Why do you use an after tax figure for cost of debt but not for cost of equity?
Because interest is a tax-deductible expense for the firm, but dividends paid to shareholders are not.
What is the total debt of 1233837 and total assets of 2178990 what is the firms debt to equity ratio?
Debt equity ratio = total debt / total equity debt equity ratio = 1233837 / 2178990 * 100 Debt equity ratio = 56.64%
Is shareholders fund same as total equity?
Yes shareholders fund is same as equity and these are different names of same thing.
Is the market value of equity an asset?
yes it is. it is under the shareholders' equity
