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Started By
Message
Debt is cheaper than Equity
Posted on 2/25/15 at 2:41 pm
Posted on 2/25/15 at 2:41 pm
Explain.
Posted on 2/25/15 at 2:43 pm to euphemus
If only there were a Money Board...
Posted on 2/25/15 at 2:44 pm to euphemus
Inflation is higher than interest rates. That was tough.
Posted on 2/25/15 at 2:46 pm to LNCHBOX
Can you explain that in terms of a balance sheet of a company?
Posted on 2/25/15 at 2:51 pm to LNCHBOX
quote:Plus the tax breaks for having debt.
Inflation is higher than interest rates. That was tough.
Posted on 2/25/15 at 3:09 pm to euphemus
Need help with your intro finance homework, eh?
Posted on 2/25/15 at 3:22 pm to euphemus
quote:
Can you explain that in terms of a balance sheet of a company?
Posted on 2/25/15 at 4:20 pm to euphemus
Weighted Average Cost of Capital - Khan Academy
Watch the first video.
Edit: Debt is not always cheaper than equity. In this environment, it is. Companies are issuing debt instruments because relative interest rates are low. This is why companies like Apple are issuing debt to pay shareholders a dividend, while retaining the equity in their cash to make investments.
Watch the first video.
Edit: Debt is not always cheaper than equity. In this environment, it is. Companies are issuing debt instruments because relative interest rates are low. This is why companies like Apple are issuing debt to pay shareholders a dividend, while retaining the equity in their cash to make investments.
This post was edited on 2/25/15 at 4:25 pm
Posted on 2/25/15 at 4:32 pm to Cmlsu5618
Thanks. I am reading up on leveraged recap and this came up. I love Khan Academy videos by the way. Dude is legit. Great NOLA export.
Posted on 2/25/15 at 7:21 pm to euphemus
quote:
Debt is cheaper than Equity
Explain.
You buy 3 vowels with equity. You only buy one with debt.
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