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Explain the difference between debt and equity What factors affect the return on common stockholder’s equity? Discuss the...

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Accounting

  1. Explain the difference between debt and equity
  2. What factors affect the return on common stockholder’sequity?
  3. Discuss the entity theory rationale for making no distinctionbetween debt and equity
  4. Explain the term “treasury stock” and why the companies acquirethem

Answer & Explanation Solved by verified expert
4.3 Ratings (611 Votes)
1Difference between Debt Equity In simple connotation Debt is borrowed money whereas Equity is owners capital In debt one has to pay timely interest fixed at some percentage as well as to settle the principal ie the debt funds or monies borrowed at some point of time Whereas in case of equity its just like owners funds which gets    See Answer
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