• Equity vs. debt | Stocks and bonds | Finance & Capital Markets | Khan Academy

    Debt vs. Equity. Market Capitalization, Asset Value, and Enterprise Value. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/chapter-7-bankruptcy-liquidation?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/more-on-ipos?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: This is an old set of videos, but if you put up with Sal's messy handwriting (it has since improved) and spotty sound, there is a lot to be learned here. In particular, t...

    published: 01 Feb 2009
  • Understanding Debt vs. Equity Financing with Bond Street

    Sign up for Bond Street's entire class on Skillshare! http://skl.sh/YT-Bond-Street-II David Haber is co-founder and the CEO of Bond Street, a startup transforming small business lending through technology, data and design. Your small business is poised for major growth — but how will you get there? In this 50-minute class, Bond Street CEO David Haber will explain how you as a creative entrepreneur can take advantage of debt financing to grow your small business. Subscribe to Skillshare’s Youtube Channel: http://skl.sh/yt-subscribe Check out all of Skillshare’s classes: http://skl.sh/youtube Like Skillshare on Facebook: https://www.facebook.com/skillshare Follow Skillshare on Twitter: https://twitter.com/skillshare Follow Skillshare on Instagram: http://instagram.com/Skillshare

    published: 13 Oct 2015
  • Debt vs. Equity Analysis: How to Advise Companies on Financing

    In this tutorial, you’ll learn how to analyze Debt vs. Equity financing options for a company, evaluate the credit stats and ratios in different operational cases, and make a recommendation based on both qualitative and quantitative factors. http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 0:50 The Short, Simple Answer 3:54 The Longer Answer – Central Japan Railway Example 12:31 Recap and Summary If you have an upcoming case study where you have to analyze a company’s financial statements and recommend Debt or Equity, how should you do it? SHORT ANSWER: All else being equal, companies want the cheapest possible financing. Since Debt is almost always cheaper than Equity, Debt is almost always th...

    published: 14 Feb 2017
  • Entrepreneurship - Debt and Equity Financing

    Teach your students about debt and equity financing. In this video a small business owner wants to expand her business, but she must decide how to pay for the truck she needs to haul her product--by loan or equity. This video can be shown along side the lessons from the Entrepreneurship Economics publication.

    published: 23 Jul 2012
  • Understanding Debt vs Equity Financing (Part 4)

    Your small business is poised for major growth — but how will you get there? In part 4 of this 50-minute class, Bond Street CEO David Haber explains the differences between debt financing and equity financing, which of the two types you qualify for, and how to weigh the pros and cons of each. Are you a design studio looking to move into a bigger space? A freelancer with an LLC planning to hire a second employee? A coffee shop opening a new location? A production company investing in new equipment? From knowing what your loan options are, to what you need for the application, and the "magic number" you should keep in mind to ensure success, David draws on his experience as both a lender and a venture capitalist to lay out the financing process in simple, clear terms. This class is meant ...

    published: 05 Apr 2016
  • What is the difference between debt vs equity funding?

    Debt vs Equity funding for Property projects and what is IRR? http://estatebaron.com.au A bank these days can lend upto 80% of the total cost of the project (land + permits + construction + sales). This means in order to make a project possible a developer only needs to come up with 20% of the money required themselves, with the rest being borrowed. A good project needs to deliver atleast 20% profit on the total money invested in the project. However out of the total money invested only 20% is equity and the rest is being borrowed. Lets say we have a 12 month project which cost $100 and generated a profit of $20. Out of the $100 investment only $20 was equity by the developer and the rest $80 was lent by bank at 5%. So out of the $20 profit, $4 goes to the bank as interest on its $80 ...

    published: 09 Mar 2016
  • Episode 123: Introduction to Debt and Equity Financing

    Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy. Click here for a 14 day free trial: http://bit.ly/1Iervwb View additional videos from Alanis Business Academy and interact with us on our social media pages: YouTube Channel: http://bit.ly/1kkvZoO Website: http://bit.ly/1ccT2QA Facebook: http://on.fb.me/1cpuBhW Twitter: http://bit.ly/1bY2WFA Google+: http://bit.ly/1kX7s6P Finance is the function responsible for identifying the firm's best sources of funding as well as how best to use those funds. These funds allow firms to meet payroll obligations, repay long-term loans, pay taxes, and purchase equipment among other things. Although many different methods of financing exist, we classify them under two categories: debt financing and equity ...

    published: 01 Aug 2013
  • Difference between Debt and Equity

    FINANCIAL MANAGEMENT – A COMPLETE STUDY If you enjoyed this content make sure to check the full course. Click on the following link to avail discount. https://www.udemy.com/financial-management-a-complete-study/?couponCode=YTB10A Indepth Analysis through 300+ lectures and case studies for CA / CFA / CPA / CMA / MBA Finance Exams and Professionals ------------------------------------------------------------------------------------------------------------------------ Welcome to one of the comprehensive ever course on Financial Management – relevant for any one aspiring to understand Financial Management and useful for students pursing courses like CA / CMA / CS / CFA / CPA, etc. A Course with close to 300 lectures explaining each and every concept in Financial Management followed by Solved C...

    published: 18 Aug 2016
  • Cost of Capital and Cost of Equity | Business Finance

    http://goo.gl/qQjWG8 for more free video tutorials covering Business Finance. This video explains two important concepts of business finance- cost of capital & cost of equity. First part of the video discusses on cost of capital drawing an example of a firm in terms of debt and equity. The cost of capital primarily depends upon the use of funds not the source. Next, the video briefly discusses on cost of equity referring the returns that investors holding shares in a firm require subsequent to an explanation on SML approach and dividend growth model. Moving on the video also asks to calculate the cost of equity for an example of extremely prices shares. Step by step calculation has shown and ways to find out some important parameters are demonstrated visibly. Good understanding on cost o...

    published: 04 Dec 2014
  • Debt to Equity Ratio

    Presenter: Nikhil The Debt to Equity Ratio is an important metric that value investors use to calculate the total liabilities of a company to shareholder's equity. This number is used to determine if it is a good idea to invest in a certain company depending on their debt to equity ratio. You must remember to take in consideration the type of business a company does because that ultimately reflects the outcome of the figure. A quote by Charles H. Brandes is used to support the facts, and an example is provided to help understand the debt to equity ratio in practice. Don't forget to Like, Comment and Subscribe!! Ending beat by Lynval D'tchalis, check him out here: https://soundcloud.com/lynval-sundayswag-dtchalis Follow us @MrSoniBros and @MrNikkyG

    published: 25 Aug 2013
  • debt and equity financing in business

    Animated Video created using Animaker - https://www.animaker.com debt and equity

    published: 30 Nov 2016
  • Equity vs Debt Funding Explained - Case Study

    London Coffee Company has chosen to buy another coffee shop. What are the company's options to fund this purchase? How do we calculate the cost of funding? How can we reduce the cost of funding? Join thousands of learners. Take free finance lessons: https://bluebookacademy.com

    published: 26 Mar 2015
  • Equity Financing (Lesson 1 of 2)

    A short video that explains the advantages and dis-advantages of financing a business with equity. Lesson 2 explains how to calculate the cost of equity. Presented by Matt H. Evans, CPA, CMA, CFM

    published: 25 Oct 2014
  • debt financing and equity financing

    published: 04 Dec 2016
  • Debt vs. Equity Financing

    Accessing capital for your business can be tricky. Consider the ins and outs of debt versus equity financing before deciding which way to fund your venture.

    published: 11 Aug 2015
  • Debt (Loans) vs Equity (Investment) - What is the Difference?

    PGIcapital.org discusses the differences of debt and equity for project financing to include real estate, energy and special situations. We do our best to explain the differences of debt and equity at project, corporate, and fund levels.  PGIcapital.org is a real estate, energy and special situations advisory firm for structured finance clients. The company works across all asset classes in commercial real estate, solar and wind energy, waste-to-energy and special situations for corporate, business and government opportunities. Project funding for debt, equity and mezzanine from partial to complete capital stack facilitation is where PGIcapital.org performs best with its investor and lender network. Our structured finance group has placed capital for real estate development projects, CMBS...

    published: 17 Oct 2015
  • Chapter 15 Debt and Equity Capital

    published: 05 Sep 2016
  • Debt vs Equity

    Ever wonder when the right time is to sell equity in your company vs. using a loan to get you to the next level? Kevin O'Leary from ABC's Shark Tank talks about the right time and place for each. And that IOU Financial is his preferred Small Business Lender. Visit us at www.ioufinancial.com. On 6/1/2015, we changed our name from IOU Central, to IOU Financial (which is our parent company’s name already). At the same time, we made some other changes that are important too… We changed our entire website to be easier to navigate and learn about IOU Financial. Our application process has been simplified and streamlined so applying for your working capital loan has never been easier. But what didn’t change is our great products, and the world’s best staff, providing you the highest level of cus...

    published: 11 Feb 2015
  • Debt Vs Equity Financing - Financial Management - Ratio Analysis

    FINANCIAL MANAGEMENT – A COMPLETE STUDY If you enjoyed this content make sure to check the full course. Click on the following link to avail discount. https://www.udemy.com/financial-management-a-complete-study/?couponCode=YTB10A Indepth Analysis through 300+ lectures and case studies for CA / CFA / CPA / CMA / MBA Finance Exams and Professionals ------------------------------------------------------------------------------------------------------------------------ Welcome to one of the comprehensive ever course on Financial Management – relevant for any one aspiring to understand Financial Management and useful for students pursing courses like CA / CMA / CS / CFA / CPA, etc. A Course with close to 300 lectures explaining each and every concept in Financial Management followed by Solved C...

    published: 28 Dec 2015
  • Equity finance

    Equity Finance is the money investors put into your business for a share in the ownership of the company. Here we explain the advantages and disadvantages of equity finance.

    published: 17 Mar 2015
  • Debt VS Equity : How to choose the right startup funding structure?

    Cash is a big portion of making any company successful, but not always do the founders have enough cash to fund their business. In this episode we will talks about whether you should get loan (debt) or sell equity to raise funds for your business/startup. You are going under Debt whenever you take loan that you promise to pay back. You are giving away equity when you sell part interest in the company in return of some funds. This video defines the difference between debt vs equity, discusses various advantage & disadvantage of going one way or the other. When should companies choose debt over equity or vice versa. Raising the right kind of capital is very important, and can change the future of the company or your stake in it. So consider very carefully which way would be ideal for your...

    published: 03 May 2013
  • WACC, Cost of Equity, and Cost of Debt in a DCF

    In this WACC and Cost of Equity tutorial, you'll learn how changes to assumptions in a DCF impact variables like the Cost of Equity, Cost of Debt. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You'll also learn about WACC (Weighted Average Cost of Capital) - and why it is not always so straightforward to answer these questions in interviews. Table of Contents: 2:22 Why Everything is Interrelated 4:22 Summary of Factors That Impact a DCF 6:37 Changes to Debt Percentages in the Capital Structure 11:38 The Risk-Free Rate, Equity Risk Premium, and Beta 12:49 The Tax Rate 14:55 Recap and Summary Why Do WACC, the Cost of Equity, and the Cost of Debt Matter? This is a VERY common interview question: "If a compan...

    published: 23 Sep 2014
  • Find Investors: Which is Best: Debt or Equity Funding?

    http://www.CapitalMatchPoint.com - Discover the advantages and disadvantages of Debt vs. Equity Funding when you are looking for investors. Get a COMPLETE TRANSCRIPT of this video at: http://capitalmatchpoint.com/content/find-investors-which-best-debt-or-equity-funding Hosted by Dave Dambro, The Capital MatchPoint, Contact us for any questions about finding private investors, your financial plan, business investors, valuing a business, entrepreneurship ideas, and investment in a business.

    published: 24 Jan 2010
  • All About Equity & Debt Market - Prof. Simply Simple & Suppandi (Hindi)

    Heard about terms ' Equity & Debt Market ', but didn't know what exactly they mean? Watch this exciting video to know all about Equity & Debt with a slice of pizza ;)

    published: 11 Mar 2016
Equity vs. debt | Stocks and bonds | Finance & Capital Markets | Khan Academy

Equity vs. debt | Stocks and bonds | Finance & Capital Markets | Khan Academy

  • Order:
  • Duration: 13:55
  • Updated: 01 Feb 2009
  • views: 244156
videos
Debt vs. Equity. Market Capitalization, Asset Value, and Enterprise Value. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/chapter-7-bankruptcy-liquidation?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/more-on-ipos?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: This is an old set of videos, but if you put up with Sal's messy handwriting (it has since improved) and spotty sound, there is a lot to be learned here. In particular, this tutorial walks through starting, financing and taking public a company (and even talks about what happens if it has trouble paying its debts). About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
https://wn.com/Equity_Vs._Debt_|_Stocks_And_Bonds_|_Finance_Capital_Markets_|_Khan_Academy
Understanding Debt vs. Equity Financing with Bond Street

Understanding Debt vs. Equity Financing with Bond Street

  • Order:
  • Duration: 5:20
  • Updated: 13 Oct 2015
  • views: 5268
videos
Sign up for Bond Street's entire class on Skillshare! http://skl.sh/YT-Bond-Street-II David Haber is co-founder and the CEO of Bond Street, a startup transforming small business lending through technology, data and design. Your small business is poised for major growth — but how will you get there? In this 50-minute class, Bond Street CEO David Haber will explain how you as a creative entrepreneur can take advantage of debt financing to grow your small business. Subscribe to Skillshare’s Youtube Channel: http://skl.sh/yt-subscribe Check out all of Skillshare’s classes: http://skl.sh/youtube Like Skillshare on Facebook: https://www.facebook.com/skillshare Follow Skillshare on Twitter: https://twitter.com/skillshare Follow Skillshare on Instagram: http://instagram.com/Skillshare
https://wn.com/Understanding_Debt_Vs._Equity_Financing_With_Bond_Street
Debt vs. Equity Analysis: How to Advise Companies on Financing

Debt vs. Equity Analysis: How to Advise Companies on Financing

  • Order:
  • Duration: 14:18
  • Updated: 14 Feb 2017
  • views: 8245
videos
In this tutorial, you’ll learn how to analyze Debt vs. Equity financing options for a company, evaluate the credit stats and ratios in different operational cases, and make a recommendation based on both qualitative and quantitative factors. http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 0:50 The Short, Simple Answer 3:54 The Longer Answer – Central Japan Railway Example 12:31 Recap and Summary If you have an upcoming case study where you have to analyze a company’s financial statements and recommend Debt or Equity, how should you do it? SHORT ANSWER: All else being equal, companies want the cheapest possible financing. Since Debt is almost always cheaper than Equity, Debt is almost always the answer. Debt is cheaper than Equity because interest paid on Debt is tax-deductible, and lenders’ expected returns are lower than those of equity investors (shareholders). The risk and potential returns of Debt are both lower. But there are also constraints and limitations on Debt – the company might not be able to exceed a certain Debt / EBITDA, or it might have to keep its EBITDA / Interest above a certain level. So, you have to test these constraints first and see how much Debt a company can raise, or if it has to use Equity or a mix of Debt and Equity. The Step-by-Step Process Step 1: Create different operational scenarios for the company – these can be simple, such as lower revenue growth and margins in the Downside case. Step 2: “Stress test” the company and see if it can meet the required credit stats, ratios, and other requirements in the Downside cases. Step 3: If not, try alternative Debt structures (e.g., no principal repayments but higher interest rates) and see if they work. Step 4: If not, consider using Equity for some or all of the company’s financing needs. Real-Life Example – Central Japan Railway The company needs to raise ¥1.6 trillion ($16 billion USD) of capital to finance a new railroad line. Option #1: Additional Equity funding (would represent 43% of its current Market Cap). Option #2: Term Loans with 10-year maturities, 5% amortization, ~4% interest, 50% cash flow sweep, and maintenance covenants. Option #3: Subordinated Notes with 10-year maturities, no amortization, ~8% interest rates, no early repayments, and only a Debt Service Coverage Ratio (DSCR) covenant. We start by evaluating the Term Loans since they’re the cheapest form of financing. Even in the Base Case, it would be almost impossible for the company to comply with the minimum DSCR covenant, and it looks far worse in the Downside cases Next, we try the Subordinated Notes instead – the lack of principal repayment will make it easier for the company to comply with the DSCR. The DSCR numbers are better, but there are still issues in the Downside and Extreme Downside cases. So, we decide to try some amount of Equity as well. We start with 25% or 50% Equity, which we can simulate by setting the EBITDA multiple for Debt to 1.5x or 1.0x instead. The DSCR compliance is much better in these scenarios, but we still run into problems in Year 4. Overall, though, 50% Subordinated Notes / 50% Equity is better if we strongly believe in the Extreme Downside case; 75% / 25% is better if the normal Downside case is more plausible. Qualitative factors also support our conclusions. For example, the company has extremely high EBITDA margins, low revenue growth, and stable cash flows due to its near-monopoly in the center of Japan, so it’s an ideal candidate for Debt. Also, there’s limited downside risk in the next 5-10 years; population decline in Japan is more of a concern over the next several decades. RESOURCES: https://youtube-breakingintowallstreet-com.s3.amazonaws.com/Debt-vs-Equity-Analysis-Slides.pdf
https://wn.com/Debt_Vs._Equity_Analysis_How_To_Advise_Companies_On_Financing
Entrepreneurship - Debt and Equity Financing

Entrepreneurship - Debt and Equity Financing

  • Order:
  • Duration: 2:21
  • Updated: 23 Jul 2012
  • views: 18899
videos
Teach your students about debt and equity financing. In this video a small business owner wants to expand her business, but she must decide how to pay for the truck she needs to haul her product--by loan or equity. This video can be shown along side the lessons from the Entrepreneurship Economics publication.
https://wn.com/Entrepreneurship_Debt_And_Equity_Financing
Understanding Debt vs Equity Financing (Part 4)

Understanding Debt vs Equity Financing (Part 4)

  • Order:
  • Duration: 5:20
  • Updated: 05 Apr 2016
  • views: 3048
videos
Your small business is poised for major growth — but how will you get there? In part 4 of this 50-minute class, Bond Street CEO David Haber explains the differences between debt financing and equity financing, which of the two types you qualify for, and how to weigh the pros and cons of each. Are you a design studio looking to move into a bigger space? A freelancer with an LLC planning to hire a second employee? A coffee shop opening a new location? A production company investing in new equipment? From knowing what your loan options are, to what you need for the application, and the "magic number" you should keep in mind to ensure success, David draws on his experience as both a lender and a venture capitalist to lay out the financing process in simple, clear terms. This class is meant for small business owners in all fields who are looking to dream big and take their companies to the next level. No prior financial knowledge is necessary — all you need is the passion that got you into this business in the first place, and the desire to invest in your own growth. Interested in a loan? Check your rate (It’s free and won't impact your credit score): http://bit.ly/1S2ALYm Click here to learn more about Bond Street: http://bit.ly/1RkMcaH Interviews, news, guides and more: http://bit.ly/1S2ALYm Like Bond Street on Facebook: http://on.fb.me/22jUYh6 Follow Bond Street on Twitter: http://bit.ly/1pmsBQR Follow Bond Street on Instagram: http://bit.ly/1Lp7qrO
https://wn.com/Understanding_Debt_Vs_Equity_Financing_(Part_4)
What is the difference between debt vs equity funding?

What is the difference between debt vs equity funding?

  • Order:
  • Duration: 1:28
  • Updated: 09 Mar 2016
  • views: 5774
videos
Debt vs Equity funding for Property projects and what is IRR? http://estatebaron.com.au A bank these days can lend upto 80% of the total cost of the project (land + permits + construction + sales). This means in order to make a project possible a developer only needs to come up with 20% of the money required themselves, with the rest being borrowed. A good project needs to deliver atleast 20% profit on the total money invested in the project. However out of the total money invested only 20% is equity and the rest is being borrowed. Lets say we have a 12 month project which cost $100 and generated a profit of $20. Out of the $100 investment only $20 was equity by the developer and the rest $80 was lent by bank at 5%. So out of the $20 profit, $4 goes to the bank as interest on its $80 at 5%. And the remaining $16 goes to the developer for his $20 investment. This is an 80% return on equity in one year. Not bad at all! If the project was two year long then the yearly equity return would be 40%. For a 4 year project this would be 20%. The annual return on equity is also called Internal Rate of Return or IRR. Find out more at http://estatebaron.com.au today!
https://wn.com/What_Is_The_Difference_Between_Debt_Vs_Equity_Funding
Episode 123: Introduction to Debt and Equity Financing

Episode 123: Introduction to Debt and Equity Financing

  • Order:
  • Duration: 4:52
  • Updated: 01 Aug 2013
  • views: 35115
videos
Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy. Click here for a 14 day free trial: http://bit.ly/1Iervwb View additional videos from Alanis Business Academy and interact with us on our social media pages: YouTube Channel: http://bit.ly/1kkvZoO Website: http://bit.ly/1ccT2QA Facebook: http://on.fb.me/1cpuBhW Twitter: http://bit.ly/1bY2WFA Google+: http://bit.ly/1kX7s6P Finance is the function responsible for identifying the firm's best sources of funding as well as how best to use those funds. These funds allow firms to meet payroll obligations, repay long-term loans, pay taxes, and purchase equipment among other things. Although many different methods of financing exist, we classify them under two categories: debt financing and equity financing. To address why firms have two main sources of funding we have take a look at the accounting equation. The basic accounting equation states that assets equal liabilities plus owners' equity. This equation remains constant because firms look to debt, also known as liabilities, or investor money, also known as owners' equity, to run operations. Debt financing is long-term borrowing provided by non-owners, meaning individuals or other firms that do not have an ownership stake in the company. Debt financing commonly takes the form of taking out loans and selling corporate bonds. Using debt financing provides several benefits to firms. First, interest payments are tax deductible. Just like the interest on a mortgage loan is tax deductible for homeowners, firms can reduce their taxable income if they pay interest on loans. Although deduction does not entirely offset the interest payments it at least lessens the financial impact of raising money through debt financing. Another benefit to debt financing is that firm's utilizing this form of financing are not required to publicly disclose of their plans as a condition of funding. The allows firms to maintain some degree of secrecy so that competitors are not made away of their future plans. The last benefit of debt financing that we'll discuss is that it avoids what is referred to as the dilution of ownership. We'll talk more about the dilution of ownership when we discuss equity financing. Although debt financing certainly has its advantages, like all things, there are some negative sides to raising money through debt financing. The first disadvantage is that a firm that uses debt financing is committing to making fixed payments, which include interest. This decreases a firm's cash flow. Firms that rely heavily in debt financing can run into cash flow problems that can jeopardize their financial stability. The next disadvantage to debt financing is that loans may come with certain restrictions. These restrictions can include things like collateral, which require the firm to pledge an asset against the loan. If the firm defaults on payments then the issuer can seize the asset and sell it to recover their investment. Another restriction is a covenant. Covenants are stipulations or terms placed on the loan that the firm must adhere to as a condition of the loan. Covenants can include restrictions on additional funding as well as restrictions on paying dividends. Equity financing involves acquiring funds from owners, who are also known as shareholders. Equity financing commonly involves the issuance of common stock in public and secondary offerings or the use of retained earnings. A benefit of using equity financing is the flexibility that it provides over debt financing. Equity financing does not come with the same collateral and covenants that can be imposed with debt financing. Another benefit to equity financing also does not increase a firms risk of default like debt financing does. A firm that utilizes equity financing does not pay interest, and although many firm's pay dividends to their investors they are under no obligation to do so. The downside to equity financing is that it produces no tax benefits and dilutes the ownership of existing shareholders. Dilution of ownership means that existing shareholders percentage of ownership decreases as the firm decides to issue additional shares. For example, lets say that you own 50 shares in ABC Company and there are 200 shares outstanding. This means that you hold a 25 percent stake in ABC Company. With such a large percentage of ownership you certainly have the power to affect decision-making. In order to raise additional funding ABC Company decides to issue 200 additional shares. You still hold 50 shares in the company, but now there are 400 shares outstanding. Which means you now hold a 12.5 percent stake in the company. Thus your ownership has been diluted due to the issuance of additional shares. A prime example of the dilution of ownership occurred in in the mid-2000's when Facebook co-founder Eduardo Saverin had his ownership stake reduced by the issuance of additional shares.
https://wn.com/Episode_123_Introduction_To_Debt_And_Equity_Financing
Difference between Debt and Equity

Difference between Debt and Equity

  • Order:
  • Duration: 8:48
  • Updated: 18 Aug 2016
  • views: 17826
videos
FINANCIAL MANAGEMENT – A COMPLETE STUDY If you enjoyed this content make sure to check the full course. Click on the following link to avail discount. https://www.udemy.com/financial-management-a-complete-study/?couponCode=YTB10A Indepth Analysis through 300+ lectures and case studies for CA / CFA / CPA / CMA / MBA Finance Exams and Professionals ------------------------------------------------------------------------------------------------------------------------ Welcome to one of the comprehensive ever course on Financial Management – relevant for any one aspiring to understand Financial Management and useful for students pursing courses like CA / CMA / CS / CFA / CPA, etc. A Course with close to 300 lectures explaining each and every concept in Financial Management followed by Solved Case Studies (Video), Conversational Style Articles explaining the concepts, Hand outs for download, Quizzes and what not?? ------------------------------------------------------------------------------------------------------------------------ This course is about Financial Management. By taking up this course, you will have opportunity to learn the all facets of Financial Management. Knowledge on Financial Management is important for every Entrepreneur and Finance Managers. Ignorance in Financial Management can be disastrous because it would invite serious trouble for the very functioning of the organisation. This is a comprehensive course, covering each and every topic in detail. In this course,you will learn the Financial Management basic concepts, theories, and techniques which deals with conceptual frame work. Following topics will be covered in this course a) Introduction to Financial Management (covering role of CFO, difference between Financial Management, Accounting and other disciplines) b) Time Value of Money c) Financial Analysis through Ratios (covering ratios for performance evaluation and financial health, application of ratio analysis in decision making). d) Financial Analysis through Cash Flow Statement e) Financial Analysis through Fund Flow Statement f) Cost of Capital of Business (Weighted Average Cost of Capital and Marginal Cost of Capital) g) Capital Structuring Decisions (Capital Structuring Patterns, Designing optimum capital structure, Capital Structure Theories). h) Leverage Analysis (Operating Leverage, Financial Leverage and Combined Leverage) I) Various Sources of Finance j) Capital Budgeting Decisions (Payback, ARR, MPV, IRR, MIRR) k) Working Capital Management (Working Capital Cycle, Cash Cost, Budgetary Control, Inventory Management, Receivables Management, Payables Management, Treasury Management) This course is structured in self learning style. It will have good number of video lectures covering all the above topics discussed. Simple English used for presentation. Take this course to understand Financial Management comprehensively. Mandatory Disclosure regarding course contents: This course is basically a bundle of following courses: a) Time Value of Money b) Cash Flow Statement Analysis c) Fund Flow Statement Analysis d) Finance Management Ratio Analysis e) Learn how to find cost of funds f) Learn Capital Structuring g) Learn NPV and IRR Techniques h) Working Capital Management. If you are purchasing this course, make sure you don't purchase the above courses. Also note, this course is also bundled in comprehensive course named Accounting, Finance and Banking - A Comprehensive Study. So if you are purchasing above course, make sure you don't purchase this course. • Category: Business What's in the Course? 1. Over 346 lectures and 48 hours of content! 2. Understand Basics of Financial Management 3. Understand Importance of Time Value of Money 4. Understand Financial Ratio Analysis 5. Understand Cash Flow Analysis 6. Understand Fund Flow Analysis 7. Understand Cost of Capital 8. Understand Capital Structuring 9. Understand Capital Budgeting Process 10. Understand Working Capital Management 11. Understand Various sources of Finance Course Requirements: 1. Students can approach with fresh mind Who Should Attend? 1. Any one who wants to learn Financial Management comprehensively 2. MBA (Finance) students 3. CA / CMA / CS / CFA / CPA / CIMA
https://wn.com/Difference_Between_Debt_And_Equity
Cost of Capital and Cost of Equity | Business Finance

Cost of Capital and Cost of Equity | Business Finance

  • Order:
  • Duration: 13:16
  • Updated: 04 Dec 2014
  • views: 45817
videos
http://goo.gl/qQjWG8 for more free video tutorials covering Business Finance. This video explains two important concepts of business finance- cost of capital & cost of equity. First part of the video discusses on cost of capital drawing an example of a firm in terms of debt and equity. The cost of capital primarily depends upon the use of funds not the source. Next, the video briefly discusses on cost of equity referring the returns that investors holding shares in a firm require subsequent to an explanation on SML approach and dividend growth model. Moving on the video also asks to calculate the cost of equity for an example of extremely prices shares. Step by step calculation has shown and ways to find out some important parameters are demonstrated visibly. Good understanding on cost of capital; cost of equity & there in between relationship as well as having knowledge on different methods of calculation is imperative to become an expert on today’s business finance and accountancy.
https://wn.com/Cost_Of_Capital_And_Cost_Of_Equity_|_Business_Finance
Debt to Equity Ratio

Debt to Equity Ratio

  • Order:
  • Duration: 3:34
  • Updated: 25 Aug 2013
  • views: 37095
videos
Presenter: Nikhil The Debt to Equity Ratio is an important metric that value investors use to calculate the total liabilities of a company to shareholder's equity. This number is used to determine if it is a good idea to invest in a certain company depending on their debt to equity ratio. You must remember to take in consideration the type of business a company does because that ultimately reflects the outcome of the figure. A quote by Charles H. Brandes is used to support the facts, and an example is provided to help understand the debt to equity ratio in practice. Don't forget to Like, Comment and Subscribe!! Ending beat by Lynval D'tchalis, check him out here: https://soundcloud.com/lynval-sundayswag-dtchalis Follow us @MrSoniBros and @MrNikkyG
https://wn.com/Debt_To_Equity_Ratio
debt and equity financing in business

debt and equity financing in business

  • Order:
  • Duration: 2:05
  • Updated: 30 Nov 2016
  • views: 193
videos
Animated Video created using Animaker - https://www.animaker.com debt and equity
https://wn.com/Debt_And_Equity_Financing_In_Business
Equity vs Debt Funding Explained - Case Study

Equity vs Debt Funding Explained - Case Study

  • Order:
  • Duration: 5:57
  • Updated: 26 Mar 2015
  • views: 356
videos
London Coffee Company has chosen to buy another coffee shop. What are the company's options to fund this purchase? How do we calculate the cost of funding? How can we reduce the cost of funding? Join thousands of learners. Take free finance lessons: https://bluebookacademy.com
https://wn.com/Equity_Vs_Debt_Funding_Explained_Case_Study
Equity Financing (Lesson 1 of 2)

Equity Financing (Lesson 1 of 2)

  • Order:
  • Duration: 11:40
  • Updated: 25 Oct 2014
  • views: 2384
videos
A short video that explains the advantages and dis-advantages of financing a business with equity. Lesson 2 explains how to calculate the cost of equity. Presented by Matt H. Evans, CPA, CMA, CFM
https://wn.com/Equity_Financing_(Lesson_1_Of_2)
debt financing and equity financing

debt financing and equity financing

  • Order:
  • Duration: 2:50
  • Updated: 04 Dec 2016
  • views: 433
videos
https://wn.com/Debt_Financing_And_Equity_Financing
Debt vs. Equity Financing

Debt vs. Equity Financing

  • Order:
  • Duration: 3:24
  • Updated: 11 Aug 2015
  • views: 1305
videos
Accessing capital for your business can be tricky. Consider the ins and outs of debt versus equity financing before deciding which way to fund your venture.
https://wn.com/Debt_Vs._Equity_Financing
Debt (Loans) vs Equity (Investment) - What is the Difference?

Debt (Loans) vs Equity (Investment) - What is the Difference?

  • Order:
  • Duration: 5:41
  • Updated: 17 Oct 2015
  • views: 1786
videos
PGIcapital.org discusses the differences of debt and equity for project financing to include real estate, energy and special situations. We do our best to explain the differences of debt and equity at project, corporate, and fund levels.  PGIcapital.org is a real estate, energy and special situations advisory firm for structured finance clients. The company works across all asset classes in commercial real estate, solar and wind energy, waste-to-energy and special situations for corporate, business and government opportunities. Project funding for debt, equity and mezzanine from partial to complete capital stack facilitation is where PGIcapital.org performs best with its investor and lender network. Our structured finance group has placed capital for real estate development projects, CMBS loans, workouts, LBOs, fund-level equity, project-level equity, and much more. We work with our borrowers to understand their needs, advise them on conditions in the capital markets, and provide solutions for completing their round(s) of funding from our network of lenders, investors and money managers.  To contact us, please call PGIcapital.org at (202) 750-3266 or via email at Info@PGIcapital.org.
https://wn.com/Debt_(Loans)_Vs_Equity_(Investment)_What_Is_The_Difference
Chapter 15   Debt and Equity Capital

Chapter 15 Debt and Equity Capital

  • Order:
  • Duration: 23:31
  • Updated: 05 Sep 2016
  • views: 90
videos
https://wn.com/Chapter_15_Debt_And_Equity_Capital
Debt vs  Equity

Debt vs Equity

  • Order:
  • Duration: 1:01
  • Updated: 11 Feb 2015
  • views: 1168
videos
Ever wonder when the right time is to sell equity in your company vs. using a loan to get you to the next level? Kevin O'Leary from ABC's Shark Tank talks about the right time and place for each. And that IOU Financial is his preferred Small Business Lender. Visit us at www.ioufinancial.com. On 6/1/2015, we changed our name from IOU Central, to IOU Financial (which is our parent company’s name already). At the same time, we made some other changes that are important too… We changed our entire website to be easier to navigate and learn about IOU Financial. Our application process has been simplified and streamlined so applying for your working capital loan has never been easier. But what didn’t change is our great products, and the world’s best staff, providing you the highest level of customer service from the industry’s most trusted lender.
https://wn.com/Debt_Vs_Equity
Debt Vs Equity Financing - Financial Management - Ratio Analysis

Debt Vs Equity Financing - Financial Management - Ratio Analysis

  • Order:
  • Duration: 6:26
  • Updated: 28 Dec 2015
  • views: 1783
videos
FINANCIAL MANAGEMENT – A COMPLETE STUDY If you enjoyed this content make sure to check the full course. Click on the following link to avail discount. https://www.udemy.com/financial-management-a-complete-study/?couponCode=YTB10A Indepth Analysis through 300+ lectures and case studies for CA / CFA / CPA / CMA / MBA Finance Exams and Professionals ------------------------------------------------------------------------------------------------------------------------ Welcome to one of the comprehensive ever course on Financial Management – relevant for any one aspiring to understand Financial Management and useful for students pursing courses like CA / CMA / CS / CFA / CPA, etc. A Course with close to 300 lectures explaining each and every concept in Financial Management followed by Solved Case Studies (Video), Conversational Style Articles explaining the concepts, Hand outs for download, Quizzes and what not?? ------------------------------------------------------------------------------------------------------------------------ This course is about Financial Management. By taking up this course, you will have opportunity to learn the all facets of Financial Management. Knowledge on Financial Management is important for every Entrepreneur and Finance Managers. Ignorance in Financial Management can be disastrous because it would invite serious trouble for the very functioning of the organisation. This is a comprehensive course, covering each and every topic in detail. In this course,you will learn the Financial Management basic concepts, theories, and techniques which deals with conceptual frame work. Following topics will be covered in this course a) Introduction to Financial Management (covering role of CFO, difference between Financial Management, Accounting and other disciplines) b) Time Value of Money c) Financial Analysis through Ratios (covering ratios for performance evaluation and financial health, application of ratio analysis in decision making). d) Financial Analysis through Cash Flow Statement e) Financial Analysis through Fund Flow Statement f) Cost of Capital of Business (Weighted Average Cost of Capital and Marginal Cost of Capital) g) Capital Structuring Decisions (Capital Structuring Patterns, Designing optimum capital structure, Capital Structure Theories). h) Leverage Analysis (Operating Leverage, Financial Leverage and Combined Leverage) I) Various Sources of Finance j) Capital Budgeting Decisions (Payback, ARR, MPV, IRR, MIRR) k) Working Capital Management (Working Capital Cycle, Cash Cost, Budgetary Control, Inventory Management, Receivables Management, Payables Management, Treasury Management) This course is structured in self learning style. It will have good number of video lectures covering all the above topics discussed. Simple English used for presentation. Take this course to understand Financial Management comprehensively. Mandatory Disclosure regarding course contents: This course is basically a bundle of following courses: a) Time Value of Money b) Cash Flow Statement Analysis c) Fund Flow Statement Analysis d) Finance Management Ratio Analysis e) Learn how to find cost of funds f) Learn Capital Structuring g) Learn NPV and IRR Techniques h) Working Capital Management. If you are purchasing this course, make sure you don't purchase the above courses. Also note, this course is also bundled in comprehensive course named Accounting, Finance and Banking - A Comprehensive Study. So if you are purchasing above course, make sure you don't purchase this course. • Category: Business What's in the Course? 1. Over 346 lectures and 48 hours of content! 2. Understand Basics of Financial Management 3. Understand Importance of Time Value of Money 4. Understand Financial Ratio Analysis 5. Understand Cash Flow Analysis 6. Understand Fund Flow Analysis 7. Understand Cost of Capital 8. Understand Capital Structuring 9. Understand Capital Budgeting Process 10. Understand Working Capital Management 11. Understand Various sources of Finance Course Requirements: 1. Students can approach with fresh mind Who Should Attend? 1. Any one who wants to learn Financial Management comprehensively 2. MBA (Finance) students 3. CA / CMA / CS / CFA / CPA / CIMA
https://wn.com/Debt_Vs_Equity_Financing_Financial_Management_Ratio_Analysis
Equity finance

Equity finance

  • Order:
  • Duration: 3:23
  • Updated: 17 Mar 2015
  • views: 134
videos
Equity Finance is the money investors put into your business for a share in the ownership of the company. Here we explain the advantages and disadvantages of equity finance.
https://wn.com/Equity_Finance
Debt VS Equity : How to choose the right startup funding structure?

Debt VS Equity : How to choose the right startup funding structure?

  • Order:
  • Duration: 7:55
  • Updated: 03 May 2013
  • views: 3295
videos
Cash is a big portion of making any company successful, but not always do the founders have enough cash to fund their business. In this episode we will talks about whether you should get loan (debt) or sell equity to raise funds for your business/startup. You are going under Debt whenever you take loan that you promise to pay back. You are giving away equity when you sell part interest in the company in return of some funds. This video defines the difference between debt vs equity, discusses various advantage & disadvantage of going one way or the other. When should companies choose debt over equity or vice versa. Raising the right kind of capital is very important, and can change the future of the company or your stake in it. So consider very carefully which way would be ideal for your scenario.
https://wn.com/Debt_Vs_Equity_How_To_Choose_The_Right_Startup_Funding_Structure
WACC, Cost of Equity, and Cost of Debt in a DCF

WACC, Cost of Equity, and Cost of Debt in a DCF

  • Order:
  • Duration: 17:56
  • Updated: 23 Sep 2014
  • views: 63500
videos
In this WACC and Cost of Equity tutorial, you'll learn how changes to assumptions in a DCF impact variables like the Cost of Equity, Cost of Debt. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You'll also learn about WACC (Weighted Average Cost of Capital) - and why it is not always so straightforward to answer these questions in interviews. Table of Contents: 2:22 Why Everything is Interrelated 4:22 Summary of Factors That Impact a DCF 6:37 Changes to Debt Percentages in the Capital Structure 11:38 The Risk-Free Rate, Equity Risk Premium, and Beta 12:49 The Tax Rate 14:55 Recap and Summary Why Do WACC, the Cost of Equity, and the Cost of Debt Matter? This is a VERY common interview question: "If a company goes from 10% debt to 30% debt, does its WACC increase or decrease?" "What if the Risk-Free Rate changes? How is everything else impacted?" "What if the company is bigger / smaller?" Plus, you need to use these concepts on the job all the time when valuing companies… these "costs" represent your opportunity cost from investing in a specific company, and you use them to evaluate that company's cash flows and determine how much the company is worth to you. EX: If you can get a 10% yield by investing in other, similar companies in this market, you'd evaluate this company's cash flows against that 10% "discount rate"… …and if this company's debt, tax rate, or overall size changes, you better know how the discount rate also changes! It could easily change the company's value to you, the investor. The Most Important Concept… Everything is interrelated - in other words, more debt will impact BOTH the equity AND the debt investors! Why? Because additional leverage makes the company riskier for everyone involved. The chance of bankruptcy is higher, so the "cost" even to the equity investors increases. AND: Other variables like the Risk-Free Rate will end up impacting everything, including Cost of Equity and Cost of Debt, because both of them are tied to overall interest rates on "safe" government bonds. Tricky: Some changes only make an impact when a company actually has debt (changes to the tax rate), and you can't always predict how the value derived from a DCF will change in response to this. Changes to the DCF Analysis and the Impact on Cost of Equity, Cost of Debt, WACC, and Implied Value: Smaller Company: Cost of Debt, Equity, and WACC are all higher. Bigger Company: Cost of Debt, Equity, and WACC are all lower. * Assuming the same capital structure percentages - if the capital structure is NOT the same, this could go either way. Emerging Market: Cost of Debt, Equity, and WACC are all higher. No Debt to Some Debt: Cost of Equity and Cost of Debt are higher. WACC is lower at first, but eventually higher. Some Debt to No Debt: Cost of Equity and Cost of Debt are lower. It's impossible to say how WACC changes because it depends on where you are in the "U-shaped curve" - if you're above the debt % that minimizes WACC, WACC will decrease. Otherwise, if you're at that minimum or below it, WACC will increase. Higher Risk-Free Rate: Cost of Equity, Debt, and WACC are all higher; they're all lower with a lower Risk-Free Rate. Higher Equity Risk Premium and Higher Beta: Cost of Equity is higher, and so is WACC; Cost of Debt doesn't change in a predictable way in response to these. When these are lower, Cost of Equity and WACC are both lower. Higher Tax Rate: Cost of Equity, Debt, and WACC are all lower; they're higher when the tax rate is lower. ** Assumes the company has debt - if it does not, taxes don't make an impact because there is no tax benefit to interest paid on debt.
https://wn.com/Wacc,_Cost_Of_Equity,_And_Cost_Of_Debt_In_A_Dcf
Find Investors: Which is Best: Debt or Equity Funding?

Find Investors: Which is Best: Debt or Equity Funding?

  • Order:
  • Duration: 2:19
  • Updated: 24 Jan 2010
  • views: 3002
videos
http://www.CapitalMatchPoint.com - Discover the advantages and disadvantages of Debt vs. Equity Funding when you are looking for investors. Get a COMPLETE TRANSCRIPT of this video at: http://capitalmatchpoint.com/content/find-investors-which-best-debt-or-equity-funding Hosted by Dave Dambro, The Capital MatchPoint, Contact us for any questions about finding private investors, your financial plan, business investors, valuing a business, entrepreneurship ideas, and investment in a business.
https://wn.com/Find_Investors_Which_Is_Best_Debt_Or_Equity_Funding
All About Equity & Debt Market - Prof. Simply Simple & Suppandi (Hindi)

All About Equity & Debt Market - Prof. Simply Simple & Suppandi (Hindi)

  • Order:
  • Duration: 3:54
  • Updated: 11 Mar 2016
  • views: 10681
videos
Heard about terms ' Equity & Debt Market ', but didn't know what exactly they mean? Watch this exciting video to know all about Equity & Debt with a slice of pizza ;)
https://wn.com/All_About_Equity_Debt_Market_Prof._Simply_Simple_Suppandi_(Hindi)