Difference between debtcapital and equity capital, Financial Management

Assignment Help:

Difference between Debtcapital and Equity capital

Debtcapital comprises:

Long-term loans (debentures, loan stock etc.)
Preference share capital
May also include bank overdrafts, but not necessarily

All the above are termed as interest bearingcapital.

Equity capital comprises:

Ordinary share capital
Share premium
Retained profits or losses
Any reserves

All the above are termed as shareholder funds

Related Discussions:- Difference between debtcapital and equity capital

Factors affecting choice of a minimum cash balance amount, Explain the fact...

Explain the factors affecting the choice of a minimum cash balance amount. The smallest cash balance amount is determined by how easy it is to raise funds when needed, how expe

Convertible and non-convertible bonds, Bonds can also be classified i...

Bonds can also be classified into convertible and non-convertible depending upon whether they carry a conversion feature or not. Convertible bonds are the ones which ca

Show the graphic presentation of net income approach, Q. Show the Graphic P...

Q. Show the Graphic Presentation of Net Income Approach? Graphic Presentation of Net Income Approach: - Net Income approach is described graphically as follows: In the

Definition, what is financial management?

what is financial management?

Written report on company, I have a assignment of financial accounting It...

I have a assignment of financial accounting Its a report on company Assignment length 2000 words

State the factors of tests of controls, State the factors of Tests of contr...

State the factors of Tests of controls Tests of controls may include · Enquiries and observations corroborating internal control functions. Inspection of docu

Define accounts receivable are sometimes not collected, Accounts receivable...

Accounts receivable are sometimes not collected. Why do companies extend trade credit when they could insist on cash for all sales? Extending trade credit almost all the time le

Review of financial research report, This assignment is an analysis of a US...

This assignment is an analysis of a US publicly-traded company; its common stock could be a prospective investment. The report is due in Week 10, in needs to be at least 5 pages,

Procurement, What is the explanation for leaset cost selection

What is the explanation for leaset cost selection

Accounting principles board, Q. Accounting Principles Board ? Accountin...

Q. Accounting Principles Board ? Accounting Principles Board (APB) -senior technical committee of AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA) that issued pronoun

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages