Debt


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Debt
DebtDebt is the amount of money borrowed by one party, the borrower, from one or more lenders. For his service of lending money, the lenders require the borrower to pay an interest i, which represents the cost of debt kd (see Chap. 6).Debt differs from equity as it is normally a fixed claim against a residual claim of the equity, has high priority over cash flows, is tax deductible, and has a finite life (a fixed maturity) as opposed to the infinite life of equity.An indebted firm can have …
Citation
Gabriele Zini: Green Electrical Energy Storage: Science and Finance for Total Fossil Fuel Substitution. Debt, Chapter (McGraw-Hill Professional, 2016), AccessEngineering Export