What factors might lead a company to gain additional fundsthrough debt financing rather than through equity financing?

Q: Why might a large corporation want to raise long-term capital through a borrowing money from…

A: Raising money from financial institutions increases the likelihood of finding investors who share…

Q: In evaluating the cost of debt where a company has several issues       outstanding should the…

A: No, while calculating the cost of borrowing when companies have several obligations outstanding we…

Q: How to use Return on Equity ratio to determaine whether a company needs to issue stocks or bonds to…

A: Return on equity is a ratio which is used by companies to measure financial performance and helps…

Q: What are some factors to consider in evaluating a company's ability to make payments on outstanding…

A: Company's ability to make payments on outstanding debt 1. Free Cash Flow:- cash inflow during the…

Q: Compare and contrast the various options available to a business that is seeking to raise further…

A: Capital is the representation of the funds and money that is acquired by a corporation for…

Q: Which one of the following factors might cause a firm to increase the debt in its financial…

A: Interest paid on debt is a tax deductible expense, which means that while ascertaining the tax…

Q: Distinguish between a primary and secondary capital market and discuss the role played these markets…

A: Answer

Q: How does additional debt in a firm influence its WACC? its free cash flow (FCF)? the agency costs of…

A: Debt is the presence of additional financial leverage in the total business and it will be having…

Q: Perform an analysis of the effect of investment funds on share ownership of business owners and…

A: The investment funds are institutions and groups of investors that provide the funds for the…

Q: Bank-based systems of financing non-financial companies are more effective than capital market-based…

A: Financial systems can help to keep domestic savings at home if they are well-governed. Financial…

Q: What is off-balance-sheet financing? Why might a companybe interested in using off-balance-sheet…

A:

Q: Discuss the factors that a Company should consider when choosing a source of debt finance and the…

A: Debt finance is borrowing money and repaying it with interest over a set period. Bank loans,…

Q: Describe some ways other than an IPO thatcompanies can use to raise funds from the capitalmarkets.

A: Additional than initial public offering a corporation might issue stock with the assistance of…

Q: company's cost of debt capital?

A: Cost of debt is the amounts of the cost which are required by the company to pay have to pay to the…

Q: Describe stocks and bonds and compare their advantages/disadvantages as a company's two major…

A: Stock: A stock can be a common sentence used to describe any company's proprietorship certificates.…

Q: Which one of the following is short-term source of working capital finance? Retained Profit…

A: Retained profit is a part of equity capital which stays in the business for long term. Factoring…

Q: What is one of the primary concerns of financial analysis regarding a firm's debt payments?

A: A firm's debt payment ability is one of the main concerns for the suppliers of the business, to the…

Q: Describe the strenghts and weaknesses of companies dding debt in their capital structure.

A: Debt is a financial instrument which is used by the companies to fund their business. Companies…

Q: which of the following is not an advantage of equity rather than debt financing a. lower cost b.…

A: Financing is a procedure where a company arrange for funds to operate its business. It is done…

Q: financial leverage affect stockholders' control position? d) How does the tax structure influence a…

A: How does the tax structure influence a firm's willingness to finance with debt? It allows a company…

Q: Given asymmetric information between investors and managers, )How would investors interpret firm’s…

A: The question is based on the concept of Corporate finance

Q: When a small firm works with an investment banker to raise funds through the sale of bonds on a…

A: Bonds:Bonds are debt instrument also known as a fixed income security that is created for raising…

Q: 7.) Describe the debt and equity markets? How do organizations obtain financing from each market?…

A: Debt is considered riskless, however equity securities have some inherent risk.

Q: The pecking order theory of capital structure suggests that managers will choose to utilise retained…

A: Pecking Order theory is an important theory in finance. It tells that the for funding purposes…

Q: What are the ways in which a bank can increase its capital adequacy ratio?

A: Capital Adequacy Ratio or CAR is referred as the measure through the capital for the bank that are…

Q: Why mix of equity and debt finance being preferred in financing businesses?

A: The financial structure composed of debt and equity capital is frequently preferred in the…

Q: When is a gain recognized in a debt restructuring?

A: Debt restructuring is a process which the companies are using to avoid the risk of default on…

Q: The idea of determining the WACC is to identify the relevant cost of utilizing funds provided by…

A: WACC is an abbreviation for weighted average cost of capital. WACC is computed to evaluate various…

Q: how a company can raise capital through the issuance of equities.

A: On the other hand, equity capital comes not through borrowing, but through the sale of shares of the…

Q: What are the charateristics of Debt financing and Equity fianancing? If a company wanted to maximize…

A: Answer: Usually for a company there are various sources available to raise funding. Such a issuing…

Q: Which company is more reliant on equity to fund their assets based on the ratios you have? What are…

A: The Decision regarding the Capital Structure of a Company is a very important aspect. A  company can…

Q: explain further the principle of self-liquidating debt and how can it be used to manage a firm's…

A: Debt is referred as an obligation, which requires one party that is debtor for making the payment or…

Q: Which one of the following factors would likely cause a firm to increase its use of debt financing…

A: Debt financing refers to the issue of debt for raising funds in a company.

Q: What actions do companies typically take to meet the large debt burdens resultingfrom LBOs?

A: Leverage buyout could be a kind of trade procurement with a huge sum of obligation. For the most…

Q: (1) What factors might lead a company to gainadditional funds through debt financing rather…

A: Financial Activities: Financial exercises are exercises that organizations embrace to assist with…

Q: What are the differences between raising capital from a financial institution and raising finances…

A: Financial institution and Financial markets: Financial institutions can be defined as any company…

Q: In what order will a firm pursue in acquiring internal, debt, and equity financing, if packing order…

A: There are many source of funds available to a firm to finance its short term and long term needs.…

Q: Why do analysts need to consider different factors when evaluating a company’s ability to repay…

A: Short-term debt or current liabilities refers to the company's financial obligations to the…

Q: Discuss the strength and weaknesses of cash-flow based valuation models. How do variations in the…

A: Cash flow based valuation models  Strengths : DCF depends, unlike most valuation models, on inflows…

Q: Explain how the use of more debt in the company affects return on equity (ROE).

A: ROE or Return on Equity relates to portion of equity capital invested by owner that are generally…

Q: Why do companies use so many different types ofinstruments to raise capital? Why not just use…

A: Finance is the life-blood of every organization. Every organization needs finance for its day-to-day…