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

Financial mangement enviroment, 1. role financial intermediaries 2. nature ...

1. role financial intermediaries 2. nature and role of money markets

Example to show the companys current gearing, Q. Example to show the compan...

Q. Example to show the companys current gearing? The company's current gearing 2000/ 8500 × 100 = 23.53% The current gearing position is on the low side particularly wh

Management of finacial institutions, what are the features of a comprehensi...

what are the features of a comprehensive interest rate risk management programme

Calculate betas against local indexes, Does is make any sense to calculate ...

Does is make any sense to calculate betas against local indexes when a company has a great part of its operations outside this local market? Both the betas calculated against l

Yield to put, Yield to put is the rate at which the present val...

Yield to put is the rate at which the present value of cash flow to the first put date is equal to the price plus interest rate. It is used for

Compounded value of a series of cash flows, Compounded Value of a Series of...

Compounded Value of a Series of Cash Flows: - We have considered merely single payment made once as well as its accumulation effect. An investor possibly interested in investing mo

Reform in a system, As the meaning of reform in a system, these reforms in ...

As the meaning of reform in a system, these reforms in corporate governance would make effective impacts over the process of audit in the context of auditor requirements and the cl

Payback period, Payback Period It is an amount of time, mainly measured...

Payback Period It is an amount of time, mainly measured in years; it takes previously the undiscounted cash inflows from a project equal the cash outflow. It indicates the leng

Margin trading, Margin Trading: Suppose an investor wants to buy 100 Re...

Margin Trading: Suppose an investor wants to buy 100 Reliance Energy shares, whose market price is Rs.500. This transaction requires Rs.50,000 but the investor has only Rs.30,0

Determine market risk premium, To determine Henkel's corporate beta, unleve...

To determine Henkel's corporate beta, unlever (and relever) the ordinary least squares (OLS) market betas for each company in the European Household and Personal Care segment. Pric

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages