What is debt
Q: How Interest, Principal, and Loan Balance Illustrated?
A: Answer: Interest is measured as a percentage of a loan balance, annually paid to the lender for the…
Q: What does Total debt include?
A: Answer: Generally, debt is an obligation imposed upon a corporation to manage its business. Total…
Q: What is marginal rate (for debt)?
A: Marginal rate of debt is the rate of interest expected by the investors on their debt instruments…
Q: What are advantages of debt financing?
A: The advantage of debt financing: Ownership remains with the person itself as when the person agrees…
Q: Secured vs Unsecured debt
A: Secured Debt: These are debts backed up with some collateral like assets. Hence the borrower of the…
Q: Why is the relevant cost of debt the interest rate on new debt, not that on alreadyoutstanding, or…
A: The pre-tax cost of debt for a company, rd, is the interest rate the company should settle on fresh…
Q: what is creditor and debtor?
A: Balance sheet: It refers to a financial statement that shows all the liabilities, assets, and…
Q: What are accrued liabilities?
A: Accrued liabilities are the outstanding expenses which are due or incurred but not yet paid in cash.…
Q: What is the distinction between debtor and creditor?
A: Accounts receivable Accounts receivable refers to the amounts to be received within a short period…
Q: What is Debt Service?
A: Step 1 The amount of money required to pay interest on the loan with the principal over some time is…
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: Why What kind of stream of income does a debt security pay for the duration of the security? A fixed…
A: The Answer
Q: Define CDO, collateralized debt obligation
A: The question is based on the structure and definition of Collateralized debt obligation (CDO), the…
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: What are the differences between a debtor and a creditor?
A: Creditor: Creditor is a person or a company who has provided fund or loan, and hence, has a claim…
Q: What is liabilities?
A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…
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: Why debtors control account may have credit balance
A: DEBTOR CONTROL ACCOUNT- IT REFLECTS THE TOTAL AMOUNT OWNED BY ALL THE INDIVIDUAL DEBTORS. THE…
Q: debt
A: Cost of debt can be defined as the rate of interest which a company incurs on its debts. The cost of…
Q: difference between debt and quity
A: A company’s capital consists of two forms, one is equity and the other is debt. When a company is…
Q: What is a financial instrument?
A: Introduction: A financial instrument is a physical or computer-generated document showing a legal…
Q: Explain the differences between domestic debt and external debt.
A: Debt is defined as money borrowed through one party by another. Many businesses and people utilize…
Q: What is a debtor
A: Solution:- Debtor meaning as follows under:-
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: When should a debt security be classified as held-tomaturity?
A: Debt securities: Debt security is money borrowed at a specific rate of interest which must be repaid…
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: What is the structure of Collateralized debt obligation. Please explain in details
A: A collateralized debt obligation also known as CDO is a complex structured credit product which is…
Q: Define the term debt ratio.
A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…
Q: Why does the use of debt lower ROA?
A: Introduction: Debt can be characterised as an amount or sum owned by a person to another for…
Q: What is the main difference between debt and equity
A: Debt basically refers to the liability that the organization take to run their business activities…
Q: What’s financial instrument
A: Financial instruments can be broadly divided into: a. cash instruments b. derivatives instruments
Q: What is Secured Borrowing?
A:
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: What is the difference between liabilities and assets?
A: The balance sheet represents the financial position of the business with assets and liabilities at…
Q: Define debt ratio
A: Ratio refers to the relationship between the two quantities which shows the quotient of one divided…
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: Explain the nature of long term debt.
A: Nature of long-term debt: Long-term debts are the obligations of the company that are required to…
Q: What does the debt ratio represent?
A: Debt to assets ratio: The debt to asset ratio shows the relationship between total asset and the…
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: How is accrued interest calculated?
A: Accrued interest is the amount of interest that has been due but not received by the lender or…
Q: Then what was the difference between a creditor and a debtor?
A: In normal course of business goods are sold and Purchased in cash and on account. Every business has…
Q: What are out of period debts? Explain?
A: Out of Period debts: It is also known as time barred debts.
Q: What Are Liabilities and Equity?
A: includes assets, liabilities, equity (equity), short-term loans, long-term loans, and other relevant…
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