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Debt capital is the money a business receives when it takes out a loan. The holders of the loan do not become share holders of the company; they are considered to be creditors.
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What is the definition of the term payable?
The term payable as an adjective refers to something that is due or required to be paid. As a noun the word payable is a liability or debt owed by a business.
What is the definition of Commercial Papers?
Commercial Paper is a term used in investment circles to mean and unsecured form of short-term debt that is usually issued by corporations. The purpose of Commercial Paper is to finance accounts receivables and short-term liability.
Definition of solar capital?
The definition of solar capital is energy from the sun. It is a resource that is renewed continuously or a renewable energy.
Definition of federal non-tax debt?
earnings release
Use context clues to determine the best definition of the term shown in all capital letters. The commanding officer was imprisoned for being a QUISLING?
That is One who betrays his country.
What is the definition of the term medical debt?
The definition of the term "medical debt" is debt that has been incurred due to health care and procedure costs. You can learn more about Medical debt at the Wikipedia.
What is the definition of the term bad debt expense?
The definition of the term bed debt expense, is when a creditor for example, has made every reasonable effort to collect the debt, but has failed to do so.
What is a debit capital?
Debt capital is that amount of capital which is raised through debt financing or loan from third parties like issuance of long term bonds etc.
What is the definition of debt financing?
Debt financing is when a firm raises money for working capital or capital expenditures. They can do this by selling bonds, bills, or notes to individual and/or institutional investors.
How compute cost of debt for WACC of a 5y project for company that has NO access to long-term debt markets?
1. If company has no access to long term debt as a source of capital then weighted average cost of capital will only include the rate of equity as a WACC for discounting long term projects as firm has not a mix of debt and equity to finance its investment projects
What is the meaning of the term 'bank capital'?
"Bank capital" is the net worth of the bank, or its value to investors. It includes retained earnings, reserves, hybrid capital instruments, subordinated term debt.
What is the sources of working capital?
Also known as capital employed its the total long term finance injected in the business i.e. Long term debt + equity
What is meant by a flexible capital structure?
Capital structure which keeps room for expansion or reduction of capital is called as flexibile capital structure. Exapnsion is easy. Shares and redeemable debentures can be used as securities for raising the finance.so that in future the capital can be reduced. A mix of a company's long-term debt, specific short-term debt, common equity and preferred equity. The capital structure is how a firm finances its overall operations and growth by using different sources of funds. Debt comes in the form of bond issues or long-term notes payable, while equity is classified as common stock, preferred stock or retained earnings. Short-term debt such as working capital requirements is also considered to be part of the capital structure.
Difference between Capital Structure and Financial Structure?
Capital Structure vs Financial Structure• Capital structure of a company is long term financing which includes long term debt, common stock and preferred stock and retained earnings.• Financial structure on the other hands also includes short term debt and accounts payable.• Capital structure is thus a subset of financial structure of a company.
Difference between capitalization and capital structure?
Capital Structure vs Financial Structure• Capital structure of a company is long term financing which includes long term debt, common stock and preferred stock and retained earnings.• Financial structure on the other hands also includes short term debt and Accounts Payable.• Capital structure is thus a subset of financial structure of a company.
What is the common definition of convertible debt?
A convertible debt is often a term heard in the finance business. By definition is it a type a bond, which has a maturity of 10 years or more, which is then converted into stocks or cash of equal value.
What is difference between the capital budgeting decision and capital structure decision?
Capital budgeting is related with the investments decisions which has to be made in long-term fixed assets and working capital management. Capital structure is related with the financing decisions regarding the debt and equity combinations,in which proportion debt and equity has to be maintained.
