Which of the following statements about the characteristics of debt and equity is true? a. All of the statements are true b. They can both be long-term financial ins

Q: How can I tell if a company is financed by debt or equity?

A: here you need to know what is debt and equity debt means you're borrowing money from an outside…

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

A: the factors list are net income:- the company will earn profit over its sales and make its…

Q: like for the answers to these questions to be explained to me, please. If D/E is 0.667, then what…

A: given, D/E=0.667

Q: The cash interest payment a corporation makes to its bondholders is based on

A: Bonds: Bonds are defined as debt instruments which are usually issued by the company that borrows to…

Q: What is the difference between total assets and total liabilities? a) Dividend b) Bond sinking…

A: Balance sheet has two parts ASSETS and LIABILITIES

Q: One of the primary reasons for investing in equity securities includes a. Receiving dividend…

A: Investments refers to the process of using the currently held excess cash to earn profitable returns…

Q: The Retained Earnings account: a. is a special fund for paying shareholders' dividends on the basis…

A: Retained earnings is the profit that is left after paying all the expenses, dividend and taxes. Such…

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: The relationship between current assets and current liabilities is   a. useful in determining…

A: The answer is as fallows

Q: is a correct statement below? A. Equity is the residual interest in the liabilities of the entity…

A: Option A is incorrect The correct statement is  Equity is the residual interest in the assets of the…

Q: Payments to acquire bonds of other corporations should be classified on a statement of cash flows…

A: The purchase of bonds of other corporations is a corporate investment and is therefore included in…

Q: Debt securities acquired by a corporation which are accounted for by recognizing unrealized holding…

A: Solution: Debt securities acquired by a corporation which are accounted for by recognizing…

Q: What does each of the following definitions refer to:  The specific mixture of long-term debt and…

A: Question is related to concept of financial key term to explain specific concept.

Q: For a corporation, what are theadvantages of corporate bondsover long-term loans?

A: Bonds are a type of debt which is issued by the company  or the government. It is long term debt on…

Q: How do bonds provide financing to corporations for their capital projects? What are the key…

A: A bond is a good source of finance. Payment of coupon at a regular interval help in tax savings.

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: Provide a real-life example of a long-term external source of finance (debt or equity issue). a)…

A: Answer: Part (a): Usually, the external source of funding is obtained from an outside of an…

Q: Investments in debt instruments are financial assets because they are   A. Equity instruments of…

A: Solution: Investments in debt instruments are financial assets because they are "Contractual rights…

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: What does the market value of debt and equity refer to? O A. The values at which debt and equity are…

A: Intrinsic value of an asset is the price which is determined based on the actual financial…

Q: Discuss the implications of financing through debt as they compare to financing through equity. What…

A: When a company raises capital by selling debt instruments to investors, this is referred to as debt…

Q: More than one measurement bases apply to investments in debt securities and investment in equity…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following liabilities should always be included in the debt calculations for a firm?…

A: Liability is an amount owned to others.

Q: investments in debt instruments are financial asset

A: First option is wrong because debt instruments are not equity instruments. Second option is wrong…

Q: True or False 1. The holder of the bond indenture is receiving interest income on a regular basis.…

A: Equity financing is the process of raising money from the investors and give ownership to the equity…

Q: Another term used for a financial asset is ________. a. debt financing b. equity financing c.…

A: Solution: Another term used for a financial asset is "financial instrument".

Q: Limited liability refers to an owner's liability for which of the following? I. The amount invested…

A: Under limited liability company the shareholders liability is limited only to the extent of nominal…

Q: For each case of a financial asset that is not related to one another, explain (must be accompanied…

A: Step 1   Financial assets are the assets which have the following characteristic   Contractual…

Q: Which of the following statements best describes how a corporation determines its cost of capital?…

A: Cost of Capital is the rate of return the firm expects to earn from its investment in order to…

Q: For each of the following definition select the correct term Definition Term Specialize in retail…

A: In the given question, we need to match the terms with their respective definations. We have matched…

Q: To determine the amount of debt a corporation has, the user should examine: O A. Income statement B.…

A: Introduction: Financial statements: 1 ) Income statement 2 ) Cash flows statement 3 ) Balance sheet.

Q: The funds supplied and used by the owner of an enterprise in the expectation that a profit will be…

A: A business raises funds from various sources to make investments and finance operations of the…

Q: . Given the choices from time deposits, corporate bonds and stock, where will you invest your…

A: Before doing investment in a project, investment class is analyzed for profitability and degree of…

Q: The following ratios gauge a bank’s leverage EXCEPT*     Bills Payable to Capital Accounts Capital…

A: Leverage ratio assess the ability of the company (here Bank) to meet its financial obligation. The…

Q: 14-which of the following statements about the characteristics of debt and equity are true? Please…

A: Debt is an amount borrowed from an investor which has a fixed obligation of income, and Equity is an…

Q: hich of the following statements best describes how a corporation determines its cost of capital?…

A: A capital structure of a firm is a mix of debt and equity used for financing its long term…

Q: When a company borrows funds from creditors, it is considered a form of: Select one: A. equity…

A: Equity financing is done by the owners of the company and they have rights in the management in the…

Q: When a corporation invests borrowed money in assets that generate profits greater than the after-tax…

A: Debts are considered a financial instrument used to raise finance for the organization. It is also…

Q: True (t) or False (f) _____ Debt investments are investments in government and corporation bonds

A: Debt investments are investments in a company or firm by borrowing amount through the way of…

Q: Not-for-profit organizations should report investments in debt securities at which of the following…

A: A debt security is an investment in bonds which is issued by the government or relevant organisation…

Q: From what sources might a corporation obtain funds through long-term debt?

A: Long term debt are  those debt which mature or repaid after more than one year. The long term debt…

Characteristics of Bonds