New answers tagged debt
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The cost of capital Equity versus Debt
The cost of existing equity is the opportunity cost of retained earnings. The company can either dividend out its earnings (or part of them) or retain them. If it retains them, it has to "...
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The cost of capital Equity versus Debt
First, remember that a company is owned by its investors - it is not owned by 'itself'. It is true that a company might choose not to always pay dividends, but that is a decision which should benefit ...
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The cost of capital Equity versus Debt
It's really the "cost" of issuing new equity that is being considered. When you sell equity, you are selling a fraction of ownership of the company - meaning rights to assets in the event of ...
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What are the implications of owing more money than is currently in circulation?
A famous quote by J Paul Getty
If you owe the bank $100 that's your problem. If you owe the bank $100
million, that's the bank's problem.
The simple truth is that there is no functional difference ...
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What should I do with my credit card debt?
Pay them all off, ASAP.
Start with the highest interest rate. Once that gets to zero, move on to the remaining one with the highest rate. Do that until you are out of debt.
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