A loan of R250 000 is secured at an interest rate of 14% p.a. (cm) and will be amortized by equal monthly payments of R3 108,80 over a period of 20 years. Which th portion of 75 payment pays off the interest and which portion reduces the capital? Interest Debt reduction portion

Q: What are the factors on which the cost of a loan depends?

A: Cost of loan are the expenses brought about by the borrower for taking the advance because of the…

Q: What does Total debt include?

A: Answer: Generally, debt is an obligation imposed upon a corporation to manage its business. Total…

Q: How can we use special financial functions to determine the total interest?

A: Financial functions have made financial calculations easy using excel, they make you calculate the…

Q: Why do we use an after-tax figure for the cost of debt but not for the cost of equity? Explain your…

A: Capital of a company is made from two main sources – debt and equity.Debt consists of liabilities…

Q: State the advantages of long-term debt financing.

A: Long Term Debt Financing: It refers to the debt financing required by the firm which usually has a…

Q: What are Debt Instruments?

A: Answer: Debt instrument is like a tool a company may use in capital raising. It allows the holders…

Q: Indicate how to present and analyze long-term debt.

A: Long-term debt of a company includes the amount of money which is borrowed by the company from…

Q: How is Collateralized debt obligation created. Plelase explain in details

A: Collateralized debt obligation (CDO): Collateralized debt obligation (CDO) is the bundle of loans…

Q: What is the significance of a debt coverage ratio?

A: Debt service coverage ratio (DSCR) is one of the numerous financial proportions that moneylenders…

Q: Explain the Structuring the Payment for a Target Debt Coverage Ratio?

A: Coverage Ratios are the ratios that depict that on an average how a firm would be able to cover its…

Q: What are the two types of debt financing?

A: Debt:   A debt is an obligation that requires on entity called the debtor to pay back a borrowed sum…

Q: Discuss the optimal amount of debt in the presence of taxes and costs associated with financial…

A: Financial distress is a situation or a point where a firm is unable to pay its debt or firm is…

Q: what is the meaning of debt-to-asset ratio?

A: Debt is the amount of liability which arises from past or present event for which a business is…

Q: Explains the effect of debt on profit margin and return on assets (ROA).

A: Profit margin is net income as a percentage of sales and Return on assets is Net income as a…

Q: Explain principal (debt)

A: Debt is the amount owed by the company for a particular period from the date of the company's…

Q: sources of financing through LO

A: Long term debt is a non current liability that is liable to be paid after one or more years.

Q: gs or debt) app

A: The explanation is given as,

Q: What are financial obligations? How they can be overcome?

A: Liabilities:The claims creditors have over assets or resources of a company are referred to as…

Q: Name the two types of debt financing?

A: Debt is the amount owed by the company for a particular period from the date of the company's…

Q: What are the financing borrowing activities?

A: The statement of cash flows is the statement which shows the change in the cash and cash equivalents…

Q: State the disadvantages of long-term debt financing.

A: Long term debt refers to the debt that has a maturity period of more than 1 year.They are also…

Q: Describe the basic methods of debt financing?

A: Every company has two major types of financing one is through raising equity shares and the other is…

Q: Give some examples of debt financing?

A: Following are some examples of debt financing: Whereas, Debentures are a corporate or government…

Q: Explain required rate of return on debt

A: Debt is some amount of money owed by a borrower to the creditor. Debt can be two types. One is…

Q: Define embedded rate (for debt)

A: An embedded option is the component of financial security the gives the issuer of the debt option or…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.