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What three forms does Equity financing come through?
selling stock,issuing bonds investment
What are the three most important forms of descretionart spending?
The government expenditure in financing the various aspects of the economy is an example of the discretionary spending.
What is the effect of the source of finance in public and private institution?
The source of finance has a bearing on the costs incurred by that company. As you know, most institutions have three potential sources of funds; Debt Financing, Equity Financing and Grants or Subsidies from Government. The later of the three is quite rare and so is normally ignored. In making a choice between debt and equity companies must weigh the costs against the benefits. Equity is generally considered to be cheaper than debt financing, for a number of reasons, including the timing of the cash outflows to the source of funds. The DuPont equation however, brings to light the many benefits of leveraging (i.e. the use of debt financing) to companies and the equity shareholders. In brief, the DuPont Equation points out that an entrepreneur (or shareholder) can earn excess returns by leveraging his investment portfolio, provided that the return earned from that portfolio is greater than the cost of the debt used. The excess return is the portion of the return earned on borrowed dollars, that isn't paid back to the lender as interest. That's all I can give you for now, but I encourage you to read more. There is quite a substantial amount of literature on this subject given that it is one of the three most important decisions in Finance. These are, the investment decision, the dividend decision and (your question) the financing decision.
Does the statement of cash flows consist of three sections?
Yes it consists of three sections as follows:Cash flow from operating activitiesCash flow from investing activitiesCash flow from financing activities.Yes, it contains three sections. These are the Operating, Investing and Financing Activities. ^^
What are the three differences in financial statements for different forms of organization?
The three differences in financial statements for different forms of organization are:Sole proprietorship equity belongs to one owner. Partnership's equity belongs to the partners. Corporation's equity belongs to the shareholders.Distributions of cash or other assets to owners of a proprietorship or partnership are referred to as withdrawals. For a corporation, this are called dividends.Since the owner of a proprietorship is also the manager, no salary expense is reported on the income statement. The same goes for partnerships. With corporations, though, salaries paid to all employees, including the managers who are shareholders, are reported as expenses.
What are the two types of financial assets created in the process of direct financing?
The two types of financial assets created in the process of direct financing are equity securities and debt securities. Equity securities represent ownership stakes in a company and include stocks or shares. Debt securities are loans made to a company and include bonds or notes, which represent the company's promise to repay the borrowed funds with interest.
What has Has three sections operating investing and financing in accounting?
Cash flow statement has these three sections which are :Cash flow from operating activitiescash flow from investing activitiescash flow from financing activities
Discuss any three forms and sources of business financing?
Wikianswers is for answering questions. Discussions take place in the discussion area, the consensus is then placed into the answer area. Please feel free to start or add a discussion
Three elements of the balance sheet?
ASSETS, LIABILITIES and EQUITY
What are the rules for equity loan refinance in the UK?
The rules for equity loan refinance in the UK are that consumers have a right to cancer a equity loan up to three days after signing a contract for an equity loan. This new rule is called the right of rescission.
What are three ways mineral can form?
Igneous forms when melted rock cools and hardens. Igneous rock is also called volcanic rock.Sedementary forms through weathering.Metamorphic forms when mountains build up.
What are three way minerals form?
Igneous forms when melted rock cools and hardens. Igneous rock is also called volcanic rock.Sedementary forms through weathering.Metamorphic forms when mountains build up.
