Name the two types of debt financing?

Q: Define the term Deferred Loan Repayments?

A: Answer: A deferred loan payment is nothing but a loan agreement in which the borrower may start…

Q: What does Total debt include?

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

Q: Give an example of a debt ratio?

A: Companies’ capital structure may contain debt and equity. It is not necessary for any company to…

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: Compare and contrast financing with debt vs. equity.  What is being financed?

A: Financing refers to raising the funds from different sources in order to carry out the business…

Q: Define  debt investment.

A: Debt Investment: Debt Investment considered as Lending money on loan to the issuing entity. The main…

Q: Explain in detail what is debt or debt financing? Examples

A: In a debt arrangement, one party is allowed to borrow some amount from other party as per given…

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 does financing activities includes?

A: Cash Flow Statement:   It is a financial statement prepared by a company to report their cash…

Q: How to record purchase of a  debt investment? Give an example.

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: What is the difference between Direct and Indirect Financing?

A: Difference between direct financing and indirect financing are as follows

Q: Define Loan Refinancing?

A: Introduction: A loan refinancing permits a debtor to replace their present obligation of debt with…

Q: re direct and indirect forms of financing.

A: Direct financing is no intermediaries involved and indirect financing is not direct but through…

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: Define Debt Issue Costs.

A: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…

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: The Ivanhoe Products Co. currently has debt with a market value of $250 million outstanding. The…

A: Here, To Find: Cost of debt =? Cost of preferred stock =? Cost of common stock =?

Q: Define the term debt ratio.

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

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: EXplain the loan structuring?

A: Loan restructuring is designing of loan according to the requirements of the borrower and also to…

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…

Q: A loan of R250 000 is secured at an interest rate of 14% p.a. (cm) and will be amortized by equal…

A: Here, Loan amount = R250,000 Interest rate = 14% compounded monthly  Term of loan = 20 years No. of…

Q: What are the benefits of using debt security?

A: The financial instruments which are bought by investors, or corporations, or mutual funds, are…

Q: Define required rate of return on debt

A: The required rate of return: This rate of return equates to the minimum return an investor would…

Q: Describe the method of determining the Cost of Debt?

A: The cost of debt is the profit a business offers its debtors and creditors. These capital suppliers…

Q: Explain in words the difference between total debt and total liabilities.

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