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

What are the misstatements, Q. What are the misstatements? A Misstatem...

Q. What are the misstatements? A Misstatement is Inconsequential - If a reasonable person would determine after considering the possibility of further undetected misstatement

Operating cycle, make an cash conversion cycle of cabbages

make an cash conversion cycle of cabbages

Determine the analytical procedures of auditors, Analytical procedures of a...

Analytical procedures of auditors Auditors must apply analytical procedures at the planning and overall review stage of audit. Analytical procedures include the considerati

Explain the country’s balance of payments data, Why would it be useful to e...

Why would it be useful to examine a country’s balance of payments data? Answer: It would be helpful to observe a country’s BOP for at least two reasons. First, BOP offers detail

Interest rates over the business cycle, Interest rates are the key de...

Interest rates are the key determinants of business cycles in emerging market countries. In the past, several economies had experienced frequent and great changes

Importance of mutual funds in the investment intermediaries, Define the imp...

Define the importance of mutual funds in the investment intermediaries. Mutual funds: Mutual funds pool resources by several companies and individuals and invest these re

Assignmment, what is logical process modelling? what is physical modelling?...

what is logical process modelling? what is physical modelling?

Step-up (step down) notes, These types of securities have more ...

These types of securities have more than one coupon rate and each subsequent coupon rate is higher (or lower) than the previous coupon rate. For

OPERATING CYCLE, discuss the applicability of operation cycle in avegetab...

discuss the applicability of operation cycle in avegetable growing business

Discounted free cash flow model as valuation of commonequity, Explain the d...

Explain the difference between the discounted free cash flow model as it is applied to the valuation of common equity and as it is applied to the valuation of complete businesses.

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages