Determine the proportion of debt and equity, Financial Management

Assignment Help:

Q. Determine the proportion of debt and equity?

Financing Decision: - This function is related to increasing of finance from different sources. For this reason the financial manager is to determine the proportion of debt and equity. In other sense there are two sources of finance:

(i) Debt:- Debt signifies long term loans and includes:

  • Debentures
  • Loan from Bank
  • Loan from Financial Institutions
  • Mortgage Loans

(ii) Equity: - Equity demotes to shareholder's funds and includes:

  • Equity Share Capital
  • Preference Share Capital
  • Reserve & Accumulated Profits

 


Related Discussions:- Determine the proportion of debt and equity

Determine about the shareholders, Determine about the Shareholders Shar...

Determine about the Shareholders Shareholders, being the owners of the company, elect board of directors and vote on major issues that affect functioning and long term plans of

Compute the expected profit, A drug company has developed a new painkiller ...

A drug company has developed a new painkiller for chronic pains, although it is doubtful whether the new drug actually has any effect. The company conducts a double-blind experimen

Define deadweight loss, What is meant by deadweight loss?  Why does a price...

What is meant by deadweight loss?  Why does a price ceiling usually result in a deadweight loss? Deadweight loss considers to the benefits lost to either consumers or producers

Analyse interest rate swap and currency swap, Problem: (a) Critically ...

Problem: (a) Critically analyse interest rate swap and currency swap. (b) Explain why a bank may face credit risk when it enters into offsetting swap contracts. (c) Two

Describe factors to analyze a company position, Q. Describe Factors to Anal...

Q. Describe Factors to Analyze a Company position? - Venture capitalists may be involved in the business because of its significant growth but poorly structured finance. An equ

Parties to mutual fund trust, Parties to Mutual Fund Trust As is common...

Parties to Mutual Fund Trust As is common to any trust covered under the Indian Trust Act, the parties involved in a mutual fund trust are the sponsor or settler, the trustees,

Pvif, how do we get the pvif of a perpetuity

how do we get the pvif of a perpetuity

Commodities exchange, Explain the organization and function of commodities...

Explain the organization and function of commodities exchange

Explain the term - financial analysis, Financial analysis The purpose o...

Financial analysis The purpose of financial statements is to provide information to all the users of these accounts to assist them in their decision-making. It has to be concer

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd