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lease financeleasing is a contract between one party called lessor as owner of asset and other called lessee whereas the lessee is provided the right
advantage of bill - source of financeadvantages of necessitating a bill as a source of financethey are a faster means of raising finance whether
bills of exchangebills of exchange are a source of finance in specifically in the export trade a bill of swapping is an unconditional arrange in
debt finance in us of small companieswhy it can be difficult for small companies to raise debt finance in us lack of safetyavoidances of finances
differences between debt and preference share capitaldifferences between debt and preference share capital are given below debt preference
similarities between preference share capital and debtsimilarities between preference share capital and debt are as followsa both have fixed returnsb
differences between equity finance and preferencedissimilarity between equity finance and preference are as follows ordinary share
similarities between equity finance and preferencesimilarities among equity finance and preference are as followsa both may be permanent whether
comparison between debt finance and ordinary share capitaldifferences between debt finance and ordinary share capital as equity finance
disadvantages of debt finance it is a conditional finance that is it is not invested along with any approval of lender debt finance whether used in
advantages of using debt finance interest on debt is a tax permit able expense and as that it is reduced via the tax allowance the cost of debt is
example of debt financean exampleinterest 10 tax rate 30the effective cost of debt interest interest rate 1 - t 101-030 7consider companies a and
commercial bank for short term loanspurpose why commercial banks prefer to lend short term loansa long-term forecasts are not only difficult although
calculate total number of ordinary shares examplecompany xyz ltd has sold 10000 ordinary shares of shs30 as partly called up plus 20000 shs45
requirements for raising loanrequirements for raising loan are as followa subsidiaries of the company and historyb qualifications ages and names of
debt financedebt finance is a fixed return finance like the cost as interest is fixed on the par value as face value of debt this is ideal to require
conditions under which loans are ideala whenever the companys gearing level is low as the level of outstanding loans is lowb the companys future cash
example of capital structure of a companyexamplecompany xyz restricted has the given capital structure as 10000 sh10 ordinary shares10000 sh20
classification of preference share capitali redeemable classredeemable preferential shares are bought back via issue company after minimum redemption
benefits ordinary share capital - financingbenefits of using ordinary share capital in the financingthey facilitate projects particularly long-term
reasons for why ordinary share capital is attractivereasons for why ordinary share capital is attractive despite to be riskyshares are used as
rights of ordinary shareholdersa right to vote choose bod purchasesales of assetsb influence decisions as right to residual assets claim right to
private limited companiesthese are not permitted to advertise their shares so like to attract public money and so that they sell their shares
public limited companiesthese are joint stock companies that have sold shares to specific public and thus have attracted public money in form of
revenue reserves - retained earningsthese are undistributed earnings those reserves are retained for the given reasons likea to create up for the