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What is levered firm?
A firm that has no debt.
What is a reputable firm?
A reputable firm is one that trades within the law and gives good and fair service to its customers
What is debt trap?
Debt Trap is a situation where you add on a new debt in order to pay an existing debt. Generally, when the firm in overlevereged all the credit sources are exhausted, firm arrives at a situation of debt trap.
Why is the coupon rate a bad estimate of a firm's cost of debt?
A coupon rate is not a good estimate of a firm's cost of debt, as it is only a reflection of the firm's cost of debt when bonds were issued, not the current cost of debt. It's not representative of the yield in the current market.
Are Flexibility issues are those which impact the debt capacity that a firm should maintain?
The debt capacity that a firm can maintain is based on expected profits from products and services. Flexibility issues determine the capacity of debt that a firm can maintain.
What is debt-trap?
Debt Trap is a situation where you add on a new debt in order to pay an existing debt. Generally, when the firm or an individual is over leveraged all the credit sources are exhausted, the firm or individual arrives at a situation of debt trap.
If a firm has an equity multiplier of 2?
an equity multiplier of 2 means that the firm finances it asset with 50% of debt instruments. thus, for every $ of investments in assets, the firm matches it with an equivalent composition of debt.
When a firm employs no debt?
It has a financial leverage of zero.
As anyone used the firm Debt Line?
They are investors
How do you calculate debt service coverage ratio of a firm?
Debt Service Coverage Ratio = Interest payable on debt/Net Profit
What companies offer debt consolidation for American consumers?
Companies that offer debt consolidation for American consumers include, in order of ranking by consumers, National Debt Relief, CuraDebt, CareOne, American Debt Enders, Ready for Zero, Savvy Money, Franklin Debt Relief, Debt Consolidation Care, Debt Consolidation America, and Fast Track Debt Relief.
If All else is constant an increase in a firm's cost of debt will do what?
will result in an increase in the firm's cost of capital.
