Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. explain the difference between debt and equity wha

Explain the difference between debt and equity What factors affect the return on common stockholder’s equity? Discuss the...

60.1K

Verified Solution

Question

Accounting

  1. Explain the difference between debt and equity
  2. What factors affect the return on common stockholder’sequity?
  3. Discuss the entity theory rationale for making no distinctionbetween debt and equity
  4. Explain the term “treasury stock” and why the companies acquirethem

Answer & Explanation Solved by verified expert
4.3 Ratings (611 Votes)
1Difference between Debt Equity In simple connotation Debt is borrowed money whereas Equity is owners capital In debt one has to pay timely interest fixed at some percentage as well as to settle the principal ie the debt funds or monies borrowed at some point of time Whereas in case of equity its just like owners funds which gets    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A pension fund manager is considering three mutual funds. The first is a stock fund, the...

Finance
Q

3. Determine whether the following properties can be satisfied by a function that is continuous on...

Basic Math
Q

GTB, Inc., has a 20 percent tax rate and has $85,656,000 in assets, currently financed entirely...

Statistics
Q

Suppose that the weights of airline passenger bags are normally distributed with a mean of 49.53...

Statistics
Q

Would high exposures to ionizing radiation (such as x-rays) be effective in making milk safe?

Biology
Q

The pH of muscle/meat is a measurement of acidity. In a normal livingmuscle the pH...

Biology
Q

1 This sign indicates that the road ahead Turns sharply right then left Curves right...

Biology
Q

A marketing research company A sample of 369 people over ag

Statistics
Q

Find the midrange for the data items in the given frequency distribution Score x Frequency...

Statistics
Q

Required: 1. Prepare the bank reconciliation for this company as of...

Accounting
Q

Part C On January 1, 2021, Aynur Corporation had $1,000,000 of common stock outstanding that...

Accounting
Q

Saved Help This question will be sent to your instructor for grading. Explain the final...

Accounting