What factors associated with debt vs. equity financing might influence price-earnings multiples?
476331
It deals with the capital structure of the company.  As the company has more debt and less equity, it's more highly levered and thus more risky, leading to a higher P/E.  With more stock than equity, there's less risk, which would probably trade at a lower P/E.
597426
Their dti, debt to income ratio.  if it is for real estate, ltv, loan to reail value, which determines the equity in the property and will let you know how much can be borrowed.  Basics, name, ssn, mothers maiden name, lengh of employment, lenght of residence, any other lending they have.
983389
There is more of a disadvantage than an advantage.  The disadvantage is that when you buy a bond before the interest payment date, the accrued interest is added to the price of the bond, which means that the bond is actually costing you more money than you might have anticipated and your yield is not going to be so high as the bond broker stipulated.  The broker will tell you that you will get the money back when the interest is paid, but in the meantime you are loosing interest on that amount.\n\nAlso do not forget the tax treatment of the accrued interest.
987654
The expected returns will vary, depending on the quality of the debt. For example, if you are holding a mortgage on a property, and you need cash, I may buy the mortgage from you. If the payment history on the account is good, I will be willing to pay more for the debt.  I will want to buy it at a discount, so that I can make some money, but may pay 90-95% (I may even pay 100%) of  the face value. \n\nIf you are holding an unsecured debt, that has gone into default, I will pay a whole lot less for it. Depending on the debt and the previous history, I would only be willing to pay a few cents on the dollar, and hope that I could collect some of it to make a profit.
913463
12%\n\nThe rate paid on the loan is 12% (assuming simple interest rather than compounding). The compensating balance is just cash kept as a deposit, which the company gets back.  This doesn't affect the interest on the loan - just opportunity cost.
631490
u mean MACRS? \nmmm... depreciation will affect net income. thus affecting net profit margin ratio.
40946
There has to be a 'proper' mix of debt to equity or you won't be able to raise either.  People go to the equity markets in large degree to allow the owners to eventually sell some of their holdings to the public and make some money.
260841
If they are sold to stockholders in exchange for cash, the cash is booked as paid-in capital.  (Actually, I believe the portion of the payment that constitutes payment of par value is booked as stockholder's equity, and the portion of payment that is above par value is tracked separately as paid-in capital in excess of par value.)  These are balance sheet items -- the company does not experience income when it sells its stock.
498933
If you have other debt, take a home equity loan, and pay off the other debt.  Payments on non-home loans are not tax deductible ... payments on home loans are tax deductible.  Also, the interest rate on a home equity loans probably would be lower than credit card debt, or a car loan.\n\nDepending upon what your tax bracket is, you may want to try to earn income in the form of dividends (not interest payments) ... dividend payments are taxed at a lower rate than regular interest.\n\nFinally, also dependent on what your tax bracket is, maybe you should invest in muni-bond fund, which pays income tax-free investment revenue.  The interest rates are lower than taxable bonds, but if you are in one of the higher tax brackets, your net after tax will be larger.
153568
The most important issue is revenue. They want to know where it will come from, what are similar companies generating for sales, and what should your company be able to sell. the next issue is profit margin, how much of that revenue will you have available to pay back the loan.
827260
Debt - Interest payments are tax deductable\nEquity - Dividend payments are not tax deductable
746473
At its simplest form, Equity = Assets - Liabilities.  So to get a "high equity" it would mean the company does not owe a lot of people money.
458503
Basically, traditional investment advice ignores the impact of equity diversification on the reduction of risk. Correlation and volatility are persistent qualities of most well-managed mutual funds. Thus, the right mix of equity funds could be less volatile, and have more return, than a mix of bond and equity funds.\n\nThe tools to research this concept can be found in the free FastTrack trial at http://www.fasttrack.net
883892
Without looking at the financial statements this is a bit tricky, however I think that the answer is D (the first one) they issues bonds.  \n\nThe bonds exchange debt for cash.  The had large cash outflows, due to the dividend, equipment purchase and the repurchase of common stock, it would result in a cash deficit.  The amortization expense does not effect cash flow. If the cash balance went up, it is because the bond issue generated more cash than the cumulative deficit created by the operations (profits and losses adjusted for cash) or because they may have large payables due to the capital purchases (doubtful but possible)  It looks to me, from your description, that the company has determined that long term debt (bonds) is cheaper than equity, so it reduced equity through stock repurchase and dividends and replaced that cash, through a bond issue.
958551
Generally speaking, it should have no impact on the market value of the firm since enterprise value is defined by the following formula: E/V = market value of equity plus market value of net debt (debt minus excess cash). However, it can redistribute the market value of each component in the company's capital structure. \n\nIn repaying the debt with excess cash, the company's liquidity is reduced, but net debt is unchanged. Overall leverage is reduced, which is a positive from a bond holder's perspective, and mildly nuetral to positive from a stockholder's perspective. \n\nIn repaying debt with proceeds of less expensive expensive debt, leverage is unchanged, but it is still a positive from a bond holder's perspective (since interest coverage will likely improve somewhat) and mildly positive from a stockholder's perspective (lower interest expense results in higher net income).
711958
About 11.8%.\n\nWACC = Wd [Kd x (1-t)] + We (Ke)\n\nWhere:\nWd = Weight of Market Value of Debt (as a % of market value of capital)\nKd = Pre-tax cost of debt\nt = effective tax rate\nWe = Weight of Market Value of Equity\nKe = Cost of Equity (post tax)\n\nMarket cap of Dell: US$61.56b\nMarket cap of Dell debt: assuming at par (US$0.50b)\n\n\nCAPM to determine Ke: (4.61% + (11%-4.6%)*1.13) = 11.8%\nBeta = 1.13\nRm = 11%\nRf = 4.6% based on 30 year treasury yield\n\nKd (n/a in preliminary 2Q statements due to no balance sheet and n/a in 1Q due to not enough breakdown for interest expense).\nDell last disclosed it interest expense line item in 2004, which had an effective rate of 2.8%.  This is too low, so it has to be adjusted upwards.  Using a top-down approach, you can assume about LIBOR + 2% or about 7.3% for a medium-grade credit-worthy company like DELL.  \n\nTax rate is 23.8% per Oct-06 results (tax of $211m/PBT of $888m).\n\nWACC = 0.8% x (7.3%) (1-23.8%) + 99.2% (11.8%) = 11.8%\n\nSensitivity is really going to depend upon your Rm (market risk) mostly.
397618
if q is de debt to equity ratio, then D=qE, where D is debt and E is equity. Since assets is equal to debt + equity, then A (assets)=D+E=qE+E=E(q+1)\nflow for equity holder is\nA xR -D x i , where R is return on assets and i is interest rate.\nThus, Return on Equity=R(q+1)-qi