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Q. Determine the proportion of debt and equity?

Financing Decision: - This function is related to increasing of finance from different sources. For this reason the financial manager is to determine the proportion of debt and equity. In other sense there are two sources of finance:

(i) Debt:- Debt signifies long term loans and includes:

Debentures
Loan from Bank
Loan from Financial Institutions
Mortgage Loans

(ii) Equity: - Equity demotes to shareholder's funds and includes:

Equity Share Capital
Preference Share Capital
Reserve & Accumulated Profits

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M9575208

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