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Is underwriting spread for debt is generally less than that for equity?
Wiki User
∙ 11y ago
yes
Wiki User
∙ 11y ago
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Debt equity ratio tells about what?
debt equity ration
How can you control your debt ratio and debt to equity ratio?
how to control debt equity ratio
What term describes the result of trading a percentage of ownership in a company to an investor in exchange for money?
Debt
What is the equity multiplier if a company has a debt equity ratio of 1.40 return assets is 8.7 persent and total equty is 520000?
The equity multiplier = debt to equity +1. Therefore, if the debt to equity ratio is 1.40, the equity multiplier is 2.40.
Cost and benefits of debt financing and equity financing?
benefit of debt and equity financing
Is debt to equity ration generally equal or less than the debt to asset ratio?
less
What is the total debt of 1233837 and total assets of 2178990 what is the firms debt to equity ratio?
Debt equity ratio = total debt / total equity debt equity ratio = 1233837 / 2178990 * 100 Debt equity ratio = 56.64%
Debt equity ratio tells about what?
debt equity ration
How can you control your debt ratio and debt to equity ratio?
how to control debt equity ratio
Why does the weighted average cost of capital of firms that uses more debt capital lower that that of a firm that uses less debt capital?
Because the cost of debt is generally lower than the cost of equity. This is because in case of financial distress, debt-holders are repaid before the equity holders are, as well as because debt has the assets of the firm as collateral and equity does not.
Breckenridge Ski Company has total assets of 422235811 and a debt ratio of 29.5 percent Calculate the companys debt-to-equity ratio and the equity multiplier?
What is given is: total assets = $422,235,811 Debt ratio = 29.5% Find: debt-to-equity ratio Equity multiplier Debt-to-equity ratio = total debt / total equity Total debt ratio = total debt / total assets Total debt = total debt ratio x total assets = 0.295 x 422,235,811 = 124,559,564.2 Total assets = total equity + total debt Total equity = total assets - total debt = 422,235,811 - 124,559,564.2 = 297,676,246.8 Debt-to-equity ratio = total debt / total equity = 124,559,564.2 / 297,676,246.8 = 0.4184 Equity multiplier = total assets / total equity = 422,235,811 / 297,676,246.8 = 1.418
What term describes the result of trading a percentage of ownership in a company to an investor in exchange for money?
Debt
What is underwriting corporate debt?
It's when you have sexual intercourse with it.
What is the equity multiplier if a company has a debt equity ratio of 1.40 return assets is 8.7 persent and total equty is 520000?
The equity multiplier = debt to equity +1. Therefore, if the debt to equity ratio is 1.40, the equity multiplier is 2.40.
Cost and benefits of debt financing and equity financing?
benefit of debt and equity financing
When a firm initially substitutes debt for equity financing what happens to the cost of capital and why?
When a firm substitutes debt for equity financing, the cost of capital generally decreases. This is because debt financing is typically cheaper than equity financing, as interest payments on debt are tax-deductible, while dividends on equity are not. By substituting debt for equity, the firm reduces its overall cost of capital and improves its financial position.
What is debt to equity conversion?
Debt to equity conversion is also known as hybrid transaction or debt-equity swap. In such a swap, the borrower is allowed to convert his debt into equity shares and the lender of the loan, hence, becomes the shareholder in due process.
