All categories

2 years ago

A form of debt or equity that possesses characteristics of both debt and equity financing is called:________

1 answer:

5 0

A form of debt or equity that possesses characteristics of both debt and equity financing is called <u>hybrid security.</u>

Debt financing means borrowing money from an external source and promising to repay it with interest by a specified future date. Equity financing means that someone donates money or assets to a company in exchange for a percentage of ownership. Each has its pros and cons, depending on your needs.

Debt financing involves borrowing money, while equity financing involves selling some of the company's shares. The main advantage of equity financing is that there is no obligation to repay the acquired funds.

The main difference between debt and equity financing is that debt financing occurs when a company raises capital by selling debt instruments to investors. In equity financing, on the other hand, a company raises capital by going public.

Learn more about hybrid security here brainly.com/question/17178041

#SPJ4

You might be interested in

Which of the following describes the substitution effect of a price change?A) The change in demand that results from a change in

Liula [17]

Answer:

The answer is D. The change in quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power

Explanation:

Substitution effect is a concept in which, as the price of a good or service increases, less of the good or service is substituted for other less expensive.

For example, if the price of Pepsi were to rise, the substitution effect would cause the consumer to buy less of it and substitute more coca-cola for now relatively more expensive Pepsi.

Option A. is wrong because we are talking about the quantity demanded and not just demand. (Please take note).

6 0

4 years ago

Tobin starts a catering company of his own and earns a substantial profit in the first year itself. His total earnings are more

Nastasia [14]

Answer:

The correct answer is: greater financial success.

Explanation:

Entrepreneurship brings many advantages to individuals who decide to go on with their ventures. Personal freedom, working at your own schedule, being your own boss, total control over decisions, and greater income are some of them. The disadvantage relies on the fact that all the responsibility relies on one person and working hours are likely to increase.

5 0

4 years ago

BE9.5 (LO 3), AP For Gundy Company, units to be produced are 5,000 in quarter 1 and 7,000 in quarter 2. It takes 1.6 hours to ma

azamat

Answer:

The correct answer for quarter 1 is $120,000, for quarter 2 is $168,000 and for 6 months is $288,000.

Explanation:

According to the scenario, computation of the given data are as follows:

Direct labor cost for Quarter 1 = Total Required Direct Labor Hours × Direct Labor Wage

Where, Total Required Direct Labor Hours = 5,000 × 1.6 hours = 8,000 hours

So, Direct labor budget for Quarter 1 = 8,000 × $15 = $120,000

Direct labor budget for Quarter 2 = Total Required Direct Labor Hours × Direct Labor Wage

Where, Total Required Direct Labor Hours = 7,000 × 1.6 hours = 11,200 hours

So, Direct labor budget for Quarter 2 = 11,200 × $15 = $168,000

So, Direct labor budget for 6 months = Direct labor budget for Quarter 1 + Direct labor budget for Quarter 2

= $120,000 + $168,000

= $288,000.

5 0

3 years ago

Some people attend college. some people have jobs. assuming these two statements are true most people that attend college have j

Nana76 [90]

The main point of attending college is to have a degree and to attain a job. Most people who already have a job doesn't want to go to college anymore because of the fact that they are already earning money. But, the statement you have given is possible and is also TRUE.

5 0

3 years ago

Explain the following sentence when thinking about the international data Electra bikes is using to run its business. It is neve

Andreas93 [3]

Answer:

B. It is never possible to have all of the information required to make a 100 percent accurate prediction because achieving perfect information is almost impossible and extremely costly.

Explanation:

No further explanation is needed

3 0

3 years ago