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The accepted definition is "one in which the capital of the enterprise consists entirely of equity investment."
However, some folks use the term interchangeably with Hedge investing firms, venture capital firms and others.
From a humanistic point of view, one could define equity as "fairness" inwhich case, say a law frim, the partnerds are equity partners, equal in all respects, regardless of gender, age, and so on.
Hope this helps,
Barry
Wiki User
∙ 13y ago
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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.
If A firm that has an equity multiplier of 4.0 will have a debt ratio of?
0.75
Should I trust a private equity firm?
You can if you choose carefully. Here is a guide http://secondventure.com/How-to-Choose-a-Private-Equity-Company.asp
The most expensive source of financing for a firm is?
common stock holder equity
The firm's optimal mix of debt and equity is called its?
target capital structure
What does all-equity mean?
The meaning of an all-equity firm is one that has raised its entire capital through the sale of shares. This is form of raising capital is known as equity financing.
When was the private equity firm Apollo Global Management founded?
The private equity firm Apollo Global Management was founded in 1990. You can get more information about the Apollo Global Management firm at the Wikipedia.
Difference between private equity firm and a corporate firm?
A private equity firm is a financial organization that invests its money in companies not traded on the stock exchanges, or in securities not available to the public at large
What financial statement shows the accounting value of a firm's equity as of a particular date?
A balance sheet shows the accounting value of a firm's equity as of a particular date.
What are the two sources of equity capital for the firm?
the two sources of equity or ownership capital for the firm are: 1. the purchase of common stock, and 2. retained earnings
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.
A firm's opportunity costs of using resources provided by the firm's owners are called what?
equity financing
Why equity is a call option on a firm's assets?
There are two ways to view a firm in terms of options; both of which rely on the Call-Put parity relationship: C = S - PV(x) + P The first is the right hand side of the equation. This is saying that equity holders own the firm, owe PV(x) to the bondholders and have a put on the firm. Therefore, if the value of the firm exceeds the value of debt then the equity holders retain the firm and do not use the put. If the value of debt is greater than the value of the firm then the put is exercised to sell the firm in order to pay off the debt. The second way, which is identical to the first, is simply to say that the equity is a call option on the firm's assets. The bondholder's own the firm, have put PV(x) into the firm and receive the benefits of the firm. However, once the value of the firm exceeds the exercise price then the equity holders (call holders) will exercise their right to buy the firm, as it will now have positive value.
If A firm that has an equity multiplier of 4.0 will have a debt ratio of?
0.75
Who are equity shareholders?
Equity shareholders are investors that own the shares of the firm. As an investor you need to pay to get ownership of the shares. The shares are either bought from another investor, or from the firm, when the shares are issued.
Is there any relationship between return on equity and dividend yield?
if there is no growth in a firm the return of equity is equal to the dividend yield
Should I trust a private equity firm?
You can if you choose carefully. Here is a guide http://secondventure.com/How-to-Choose-a-Private-Equity-Company.asp
