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This answers must be tackled in two terms; the long and short term(s)
Short term
Debt is a loan borrowed from either banks or financial institutions.
this loan must be serviced with interest and later the payment of the principal.
Adv.
1) In some countries (examle Kenya ) interest is a tax free item,so its more cheaper bcoz it reduces tax burden.
2)When raising a detbt, the cost is more minimal coz one needs only the necessary books of a/cs(t,p and l) take to bank and present them to credit controller.
3) It takes shorter period to raise debt capital than other sources coz does not need alot of regulations eg share holder approval/capital markets.(appys in Kenya)
This wiil lead to promt investimentand ealy returns
4)debt can be borrowed from any institution either external or internal sources.
5)there are no devident payable if we finance bu debt
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What is source of fund?
source of fund
What are the cheapest source of finance?
The cheapest source of finance is retain.
Why is debt the cheapest source to finance a firm?
Because the firm don't have to pay an interest when obtaining it.debt isn't the cheapest source of finance on the contrarily interest must be paid on debt.The cheapest source of finance is retained earnings,this earnings can be converted into permanent share capital by issuing bonus shares t existing shareholders free of any cash contibutions
What is the symbol for Western Asset Emerging Markets Debt Fund Inc in the NYSE?
The symbol for Western Asset Emerging Markets Debt Fund Inc in the NYSE is: ESD.
What is the difference between source of funds and sources of funds?
sources of fund means from where the capital we are getting & source of fund means how we can get the capital.
What is source of fund?
source of fund
What are the cheapest source of finance?
The cheapest source of finance is retain.
Why is debt the cheapest source to finance a firm?
Because the firm don't have to pay an interest when obtaining it.debt isn't the cheapest source of finance on the contrarily interest must be paid on debt.The cheapest source of finance is retained earnings,this earnings can be converted into permanent share capital by issuing bonus shares t existing shareholders free of any cash contibutions
What is the cheapest and most important source of equity capital in a firm?
5. , the cheapest source of capital is debt. Whereas the most expensive source of capital is common stock. Because common stock holders do share the actual profit earned from the operation of a business. But when it comes to bonds, they are simply stated in terms of interest. Besides the ownership interest in common stock will make it more expensive while vice versa is for debt.
What are some debt oriented fund of funds in India?
A Fund of Fund is a Mutual Fund where the fund manager does not buy individual debt instruments. Instead he buys mutual funds of a particular type. In this case, Debt Oriented Mutual Funds.Example:a. IDFC All Seasons Bondb. ICICI Prudential Advisor Series - Very Cautious Planc. etc
How did hamilton plan to handle the national debt?
by selling government bonds to fund the debt
Explain taxes as a sources of fund?
All of the money taxes that is collected from the taxpayers would be a source for the fund. And the source of the fund would be the taxpayers that are paying the money tax to the fund.
What is the symbol for Western Asset Emerging Markets Debt Fund Inc in the NYSE?
The symbol for Western Asset Emerging Markets Debt Fund Inc in the NYSE is: ESD.
How did Alexander hamilton plan to handle the national debt?
by selling government bonds to fund the debt
In what year did Western Asset Emerging Markets Debt Fund Inc - ESD - have its IPO?
Western Asset Emerging Markets Debt Fund Inc (ESD)had its IPO in 2003.
Is the Social Security Trust Fund part of the national debt?
The $2.5 Trillion of debt obligations held by the SS Trust Fund are most certainly part of the National Debt. The obligations are legally parri passu (equal under the law) with the debt held by the public.
What is the difference between source of funds and sources of funds?
sources of fund means from where the capital we are getting & source of fund means how we can get the capital.
