Essays on Debt

On June 7, 2017, Kohlberg Kravis Roberts & Co. (KKR) made an unsolicited proposal to purchase 100% of Vocus Group Limited's shares for $3.5 per share in cash. The plan makes several assumptions such as the net debt for 30th June 2017 is less than $1.1 billion and the earnings...

The financial accounts of a corporation are a representation of the firm's position, hence quality is critical. Financial statements inform the company about its financial situation, and if they are wrong or of poor quality, the company might be thrown off balance. There are four types of financial statements: cash...

The United States Treasury divides government spending into required and discretionary spending, as well as debt interest. Mandatory spending is spending that Congress legislates for outside of the regular appropriations process, and it accounts for around 90% of federal expenditures (Himmelstein & Woolhandler, 2016). Discretionary spending is the component of...

The weighted average cost of capital methodology does not surprise me because calculating the cost of debt is rather simple. In this situation, the market rate is utilized to calculate the current cost of the company's debt. However, if the firm's rate differs from the market rate, an estimation is...

Elizabeth Peter believed that a debt collection agency had broken the Fair Debt Collection Practice Act after receiving a letter from the agency. She as a result complained about these violations, but the case was never brought to court. Following a summary decision, Elizabeth Peter's lawsuit against the three partners...

During difficult economic times, it is normal for the government to invest more than it earns. As a consequence, there is a deficit or debt. As a result, drastic budget cuts are implemented around the board, impacting the whole region. A loss like this happens as unemployment rises, causing a...

Accounts payable are short-term contributions made by businesses to their creditors. The liability is accrued as of the corporation purchases necessary goods and services without the need of signing a promissory note (Petroons et al., 2014). Check payable clearly reflects a lingering responsibility from a previous financial transaction. Paying off...

The cost of capital is the fee levied on the sum of money (debt and capital) used to operate a company. The cost of capital is determined by the type of borrowing used by a business; it corresponds to the cost of debt if the company is entirely funded by...

Debt is a form of obligation that requires you to pay money or another agreed-upon value to a creditor. It is the opposite of an immediate purchase, since the payments are delayed. A debtor should be familiar with the terms and conditions associated with debt. This will help them make...