The general rule is that because debt is deductible, there is a optimum level of debt to equity to maximise shareholder returns. So the answer would depend on the company tax rate and price of debt in the area of the business. There will be a balance point where using equity results in a better outcome for shareholders.
TRUE
common stock holder equity
Earnings per share on common stock are always lower.
Financing activities section
Floor stock financing is the term used when an auto dealership obtains financing from a bank in order to buy new vehicles for their lot. This is usually a short term loan and is repaid as the vehicles are sold.
TRUE
TRUE
common stock holder equity
Common stock is shown under "Cash flow from financing activities" section of cash flow statement.
Common stock issued for cash will be appear under cash flows from financing activities in indirect method of cash flow statement.
Earnings per share on common stock are always lower.
Financing activities section
common stock
Equity financing
Floor stock financing is the term used when an auto dealership obtains financing from a bank in order to buy new vehicles for their lot. This is usually a short term loan and is repaid as the vehicles are sold.
Floor stock financing is the term used when an auto dealership obtains financing from a bank in order to buy new vehicles for their lot. This is usually a short term loan and is repaid as the vehicles are sold.
Yes