Interested to Buy Any Domain ? << Click Here >> for more details...
What are the main differences between corporate debt and
equity? Why do some firms try to issue equity in the guise
of debt?
- 8 Answers
- 23796 Views
- Pepsi, I also Faced
- E-Mail Answers
Answer Posted / archana kulkarni
Equity capital is own fund whereas corporate debt is owed
fund.
Interest payment is mandatory on debt each year whereas
dividend is not re madatory to be declared and paid every
year. Also equity is long term capital and payable by
Company on liquidation whereas debt is to be paid on
specific time as prescribed in terms & conditions at the
time of issue. Therefore some firms try to issue equity in
the guise of debt.
| Is This Answer Correct ? | 12 Yes | 5 No |
Post New Answer View All Answers
How does a bank or financial institution calculate COGS? What are the 'direct' costs of a loan or deposit revenue operation?
Income Tax Department sends cheque for INR 2 Crore as Refund after completion of Assessment for A.Y.2011 - 2012 to a Company. As per IT Return filed for this year I.T. due to Government was INR 60 Lac but was assessed at INR 70 Lac. TDS due to Company was INR 3 Crore which was admitted as INR 2.7 Crore by Government. Government also adjusts Tax dues for A.Y. 2009 - 2010 of INR 40 Lac which was disputed earlier by the Company and Appeal was lying with the CIT. Government pays Interest to the Company amounting to INR 40 Lac. Provision for Income Tax made by the Company in its accounts for F.Y. 2010 - 2011 (A.Y. 2011 - 2012) was INR 50 Lac. What would be the Journal Entry at the time of receipt of Refund of INR 2 Crore from the Government in A.Y. 2014 - 2015 in the books of the Company?
STATE THE DIFFERENCE BETWEEN BANKING FIS AND NON BANKING FIS
i have cleared c.s inter. for the purpose of training i want to know the companies who are providing training of c.s in punjab state.please help me in this.
Is form 38 mandatory to issue c form in up. thru online mode
Does any one attented HSBC audit compliance test? Please let me know asap. suraj
1) What is the steps of delisting the listed company 2) How to spliting the listed company shares 3) Which way the company should function when it has paidup capital is equal or more than 5,00,00,000/- (I mean which way the company should do it work in the company Act 1956. Is the company have to appoint a CS and and managing director of a any other things which is compulsory for these kind of company which paid up capital is 5,00,000/-
what is mean by tax holiday?
what is rate of service tax and form no. of service tax ? wt rules of service tax a particuler once .?
I want to validate Customer credit payment with customer invoice, When billing time, the system check the customer credit payment, if customer credit is lesser than customer bill, system should not allow the billing further process. Can I configure in sap
How often is the stock market ticker updated? 15sec? 30sec?
what is the abrevation for JJ in form jj
How to analyse the day to day sensex Points or Forex Values?
when will be appsc exams will held pls give me the dates
Occasionally it is said that issuing convertible bonds is better than issuing stock when the firms shares are undervalued. Suppose that the financial manager of Decent Furniture Company does in fact have inside information indicating that the decent stock price is too low. Decent furniture earnings will in fact be higher than investor’s expectations. Suppose further that the inside information cannot be released without giving away a valuable competitive secret. Clearly, selling shares at the present low price would harm Decent’s existing shareholders. Will they also lose if convertible bonds are issued? If they do lose in this case, is the loss more or less than it would be if common stock is issued? Now suppose that investors forecast earnings accurately, but still under value the stock because they overestimate Decent’s actual business risk. Does this change your answer to the questions posed in the preceding paragraph? Explain.
