Debt vs Equity: What's the Difference?
Companies usually mix both, which is called the capital structure (OpenStax).
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1.What is the difference between debt and equity?
Companies usually mix both, which is called the capital structure (OpenStax).
2.What does an equity holder get?
Equity holders have a residual claim on the income and voting rights in how the firm is run (OpenStax).
3.Marge borrows 100,000 at 6 percent. The project earns 30,000. What does she keep?
She pays 6,000 interest and keeps 24,000; Leo keeps 60 percent of 30,000, which is 18,000 (worked example).
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