What are the two types of debt financing?

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: Define Debt-to-assets ratio

A: Debt-asset ratio is a measure that tells how much assets of the firm are financed with the debt.…

Q: Distinguish between a debt security and an equity security.

A: Debt Security:    Debt security refers to a financial instrument that is issued by the organization…

Q: Explain Classifications of Debt Investments.

A: Debt securities: Debt security is money borrowed at a specific rate of interest which must be repaid…

Q: What is a debt security?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Explain an example how to calculate debt ratio.

A: Debt Ratio: Debt ratio is the percentage of assets of the company that are procured or financed…

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: 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: Define  debt investment.

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

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: 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 is meant by debt and equity?

A: Equity:Equity is referred to as stock, specifying the interest of ownership in the entity. Equity…

Q: at is the relationship of Debt (Loans) to Borrowers to Financial Intermediaries?

A: The financial intermediaries are very important in the financial world and transactions and there…

Q: list advantages and disadvantages of debt and common equity

A: Debts are the borrowed funds and debenture holders are creditors of the firm. Debts are those funds…

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: What are bond issue costs? What is an underwriter?

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

Q: Explain Types of Debt Instruments

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

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 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: What is income bond?

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: The debt ratio may be measured in many different forms. what are they?

A: The debt ratio is a money related proportion that gauges the degree of an organization's influence.…

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: Identify and explain the three types of classifications for investments in debt

A: Debt investments: The investments in debt securities are referred to as debt investments.   Debt…

Q: What is the debt to total assets ratio?

A: Debt to Total asset Ratio: Debt to total asset ratio is the relationship between the Total…

Q: Explain an example how to record the purchase of debt investment.

A: When a debt investment is purchased , it is recorded as a asset in the books of the company as it is…

Q: Define debt ratio

A: Ratio refers to the relationship between the two quantities which shows the quotient of one divided…

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: Recognize the difference between equity and debt instruments.

A: solution concept Equity means the  owners of the company. The equity share holders of the company…

Q: Define secured debt

A: The term debt refers to the money taken out a loan from individuals, financial institutions, or…

Q: What does the disclosure note for debt includes?

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

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: Identify the major categories of debt financing

A: Introduction : In simple words, debt refers to the source of fund under which the company issue its…

Q: What is debt

A: The financial statements of the business includes the income statement and balance sheet of the…

Q: What elements do each of the loans have in common?

A: LOAN -      A loan could be a sort of debt incurred by a personal or different entity. The…

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…