debt equity discussion

Related BrainMass Solutions

• What is the WACC for the debt/equity combinations

  //In this paragraph discussion is made regarding the impact of use of debt on cost of equity. There is discussion about the reduction of overall cost by using optimum debt amount in the capital structure.

• Chapter 1,2:Berk, Johnathan and Peter DeMarzo. (2011). Corporate Finance: The Core, 2nd ed. Arlington Street Boston, MA. Pearson Prentice Hall.

  ratio Debt-equity Ratio = Total Liabilities / Shareholders Equity = $51,621 / $57,083 = 0.90 Microsoft has a moderate level of debt to equity ratio of 0.90.

• Basic Accounting Concept: Weighted Average Cost of Capital

  Typically debt is cheaper than equity so debt is likely costing less than 12% and equity is costing more than 12% but given the proportion of debt to equity ("weighted"), the weighted average cost of capital is between the cost of debt and cost of equity

• Are all liabilities the same as it pertains to risk?

  Your discussion is 337 words and indicates the criteria for sorting debt into risk levels and why debt may be preferred over added equity.

• Finance Ratio Discussion

  Return on Equity l. Return on Assets a. Long Term Debt Ratio= Long Term Debt / equity = 65000 / 80000 = 0.8125 e. Current Ratio = current asset / current liability = 102000 / 77000 = 1.32 f.

• David Ortiz Motors has a target capital structure of 40 percent debt and 60 percent equity.

  91106 David Ortiz Motors has a target capital structure of 40 percent debt and 60 percent equity. David Ortiz Motors has a target capital structure of 40 percent debt and 60 percent equity.

• US GAAP vs. IFRS: Shareholder equity section

  US GAAP classifies them as debt until converted. IFRS splits the instruments into their debt and equity (derivative) components.

• Corporate Income Tax - Equity and Debt Finance

  Resources - http://bizfinance.about.com/od/generalinformatio1/a/debtequityfin.htm This solution explains how the corporate income tax affects the choice between equity and debt financing. A comprehensive discussion is provided.

• This post analyzes the financial statements of a public co.

  AT&T's capital activities consist of debt and stockholders' equity. The current maturities of long-term debt do not include $1,200 of long-term debt that was called on January 13, 2012.

• Wal-Mart: GAAP Balance sheet vs. Economic Balance Sheet

  operations Debt claims Long-term debt Debt claims Long-term obligations under capital leases Debt claims Deferred income taxes and other Debt claims Minority interest Other capital claims Preferred stock Equity claims Common stock Equity claims