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
- 20393 Views
- Pepsi, I also Faced
- E-Mail Answers
Answer Posted / deepak mistry
corporate debt requried to pay fixed rate of interest and
it is mandentory in nature.however,on equity company may
pay dividend or not as the case.
At the time of liquidation corporate debt
have preferntial right and equity holdre have secondary
right after debt.
payment to corpo. debt is compulsory in
nature they has to paid even by calling money from equity
holder.payment to equity share holder has to made out
current profit or accumalted profit of company.
| Is This Answer Correct ? | 6 Yes | 3 No |
Post New Answer View All Answers
How often is the stock market ticker updated? 15sec? 30sec?
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.
how to solve the problem of sechdule date problem in sap proframme.
analyses of Cost control
MY QUESTION IS THAT IS WHEY WE SELL THE UPS IN THE MARKET BUY FROM THE IMPORT WHAT THE DUTY WE WILL FORWARD TO THEM.
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
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?
I am Simrat Kaur. I am persuing graduation from P.U. I have an experience of 14 months as a CSA. But i hav an experience letter of 6 months.But I can show my joinin letter of the other job. I hav knowledge of basics of computer & internet. Actually, m findin job in chandigarh. I am findin the right opportunity. so, Can u plz help me in findin the right job?? Can u plz tel me abt where interviews r goin on?
How does a bank or financial institution calculate COGS? What are the 'direct' costs of a loan or deposit revenue operation?
why your choseing bank of america
How to analyse the day to day sensex Points or Forex Values?
Does provisions need to be subtracted from reserves if net worth is calculated on the basis of share capital based method
what is correct accounting treatment for preliminary exps and pre-operative Expsas per AS 26? or any other applicable AS?
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/-
STATE & EXPLAIN THE IMPACT OF GLOBAL FINANCIAL CRIS ON CEMENT SECTOR IN INDIA:
