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

Restrictions on investments, Restrictions on Investments: A mutual fund...

Restrictions on Investments: A mutual fund scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which are rated not below investment

Securities and exchange commission (sec), SEC is the Regulatory body for...

SEC is the Regulatory body for investor protection in the United States which is created through the Securities Exchange Act of 1934.

Define arbitrage process, Q. Define Arbitrage Process ? The basic theor...

Q. Define Arbitrage Process ? The basic theory of the MM approach if we ignore the taxes is that the total value of a firm should be constant irrespective of the degree of leve

State the exam technique for analysing performance, Exam technique for anal...

Exam technique for analysing performance The below steps must be adopted when answering a question on analysing performance: Step 1 Review figures as they are and commen

Long-term solvency ratios (financial leverage ratios), Long-Term Solvency R...

Long-Term Solvency Ratios (Financial Leverage Ratios) Debt-Equity Ratio = Total Debt / Total Equity à It is a measure of a company's debt utilization. It gives the ex

Types of rating - debt rating, Based on the period involved in repaym...

Based on the period involved in repayment of the debt obligations, the debt instruments could be classified into long-/medium-/short-term debt instruments.

Healthcare Finance, I am trying to make a payment and I can''t seem to get ...

I am trying to make a payment and I can''t seem to get it to go throught on you all site..

Illustrate the capital markets in maturity of the securities, Illustrate th...

Illustrate the capital markets in maturity of the securities? On the basis of the maturity of the securities traded, capital markets can be introduced here: Capital markets

What are the characteristics of the financing decision, What are the Charac...

What are the Characteristics of the financing decision There are two characteristics of the financing decision. First, theory of capital structure which illustrates theore

Financial equivalent of the balance, The Federal Minister for the Environme...

The Federal Minister for the Environment is worried about the Greenhouse Effect, one outcome of which would be that Adelaide would have a subtropical climate by the year 2015. This

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages