57:
for the repayment of annual returns. This means that legally the interest on debt capital must be repaid in full before any dividends are paid to any suppliers of equity. Likewise, in dissolution, repayment to debt holders ranks higher than distributions to preference holders and equity holders.
46:. However, sometimes the loan is paid back based on a percentage of the company's monthly revenue instead of a fixed interest rate, such as the case with
42:, and the suppliers of debt capital usually receive a contractually fixed annual percentage return on their loan, and this is known as the
58:
Equity holders (shareholders) have all rights in the business, but the debt holders have no rights in the business.
89:
47:
70:
38:
because subscribers to debt capital do not become part owners of the business, but are merely
90:
Elite
Mergers & Acquisitions: M&A Advisor: Financing Options For Mid Market Companies
99:
Corporate
Finance: Theory and Practice, by Steve Lumby and Chris Jones, Thompson, London.
54:
27:
112:
106:
35:
43:
39:
30:, and is normally repaid at some future date. Debt capital differs from
31:
23:
22:
is the capital that a business raises by taking out a
16:
Capital that a business raises by taking out a loan
26:. It is a loan made to a company, typically as
8:
82:
7:
14:
53:Debt capital ranks higher than
1:
71:debt-to-equity capital ratio
129:
61:A company that is highly
48:revenue-based financing
69:(US), has a high
120:
92:
87:
128:
127:
123:
122:
121:
119:
118:
117:
103:
102:
96:
95:
88:
84:
79:
17:
12:
11:
5:
126:
124:
116:
115:
105:
104:
101:
100:
94:
93:
81:
80:
78:
75:
55:equity capital
28:growth capital
15:
13:
10:
9:
6:
4:
3:
2:
125:
114:
111:
110:
108:
98:
97:
91:
86:
83:
76:
74:
72:
68:
64:
59:
56:
51:
49:
45:
41:
37:
36:share capital
33:
29:
25:
21:
85:
66:
62:
60:
52:
20:Debt capital
19:
18:
44:coupon rate
77:References
67:leveraged
65:(UK), or
40:creditors
107:Category
63:geared
32:equity
113:Debt
24:loan
73:.
34:or
109::
50:.
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.