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13y ago

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What is the the price paid to borrow money called?

The price paid to borrow money is called interest. It is usually expressed as a percentage of the amount borrowed, known as the principal, and can be calculated on a periodic basis, such as annually or monthly. Interest compensates the lender for the risk of lending and the opportunity cost of not using the money for other purposes.


What is dept capital?

Debt capital is the capital that a business raises by taking out a loan. It is a loan made to a company that is normally repaid at some future date. Debt capital differs from equity or share capital because subscribers to debt capital do not become part owners of the business, but are merely creditors, and the suppliers of debt capital usually receive a contractually fixed annual percentage return on their loan, and this is known as the coupon rate. Debt capital ranks higher than equity capital for the repayment of annual returns. This means that legally, the interest on debt capital must be repaid in full before any dividends are paid to any suppliers of equity. A company that is highly geared has a high debt capital to equity capital ratio. I am sure this is enough. Have a nice day. Regards, Susan Janes.


Are you responsible for the balance once your house is sold under foreclosure?

Yes, if the sale price is less than you borrowed (minus any capital amount you have paid off), you are still responsible for the difference and ongoing interest on the difference. If you are in debt you should seek help from a debt adviser - there are some who will help you for free, they will be able to get the interest frozen and advise you weather you should go bankrupt to free yourself form debt.


What is the difference between paid-in capital and additional paid-in capital in a company's financial statements?

Paid-in capital represents the total amount of capital contributed by shareholders for purchasing stock, while additional paid-in capital specifically refers to the amount paid above the stock's par value.


How do credit card companies get paid?

With the interest you pay on what you borrow.

Related Questions

Whats money paid out to buy things or settle a debt?

Capital of Florida is Richard


What is dept capital?

Debt capital is the capital that a business raises by taking out a loan. It is a loan made to a company that is normally repaid at some future date. Debt capital differs from equity or share capital because subscribers to debt capital do not become part owners of the business, but are merely creditors, and the suppliers of debt capital usually receive a contractually fixed annual percentage return on their loan, and this is known as the coupon rate. Debt capital ranks higher than equity capital for the repayment of annual returns. This means that legally, the interest on debt capital must be repaid in full before any dividends are paid to any suppliers of equity. A company that is highly geared has a high debt capital to equity capital ratio. I am sure this is enough. Have a nice day. Regards, Susan Janes.


What is short for a debt to be paid?

An IOU, as in I owe you, is short for a debt to be paid


What us the differences between debt and equity capital?

Equity capital is the form of finance which is provided by owners of the business while debt financing is form of long term loan which requires to pay interest. Debt financing has the benefit that interest paid for that is tax deductable while equity capital don't have to pay any interest and that's why it is not a tax deductable so for this type of benefit of debt finance companies tries to maintain proper mix of debt as well as equity capital in the business.


What does Additional paid in capital attributable to the beneficial conversion feature mean?

Additional paid in capital attributable to the beneficial conversion feature means the price of a convertible instrument which is below the fair value per share. This is usually a price difference which the shareholder will benefit from.Ê


What are the accounting journal entries to record the exchange of debt for common stock?

Debit the liability (debt) account and credit Common Stock (for the par value of the shares) and Additional Paid in Capital (for the balance).


Are Paid-Up Capital and paid - in capital the same?

no.


What is the difference between cost of debt and cost of equity?

Cost of Debt: when company borrow funds from outside or take debt from financial institutions or other resources the interest paid on that amount is called cost of debt.Cost of Equity: Similarly when firm raise money from already shareholders by issuing more shares to them or shares to new share holders then the dividend (interest) paid to them is called cost of equity.


How do you calculate paid-up capital?

The actual term is 'paid in' capital It is the capital paid in by shareholders to the co above and beyond shared capital.


How do you calculate paid up capital?

The actual term is 'paid in' capital It is the capital paid in by shareholders to the co above and beyond shared capital.


What can you countersue Capital One for taking you to small claims court after you paid the bill in full and proved it paid. Repeatedly asked them to provide proof of the debt and they can not?

If Capital One has taken a person to court once a bill has been paid in full the person can counter-sue them for harassment. There needs to be proof shown that the bill was actually paid in full and that the company was bothering them about paying the bill after it was paid.


What does 'ambition's debt is paid' mean?

I believe in this context Caesar's ambition and thirst for power came at the price of death. His assassination is the repayment for his trespasses.