Tag : Cost of capital

Understanding Debt Equity Finance

Now let’s have a look in to the world of debt equity finance. Basically debt equity finance is the cash that proprietor or the business partners put into the business from their own pockets. As a return for the money that has been put into the business they get a share I the ownership of the company. Not only this ends here, but the profits arising from business after the payouts on interest and profit after taxes. All these profits after deductions are accessible to the equity owner. The invested money remains in the company and the owners thus get their invested money only after selling the shares of the company to someone else.