a k s t u i s k u w m u k o p l h u i o t r f d c v b n m k l o i u y t r e g t r e w s a d f g h j...
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A k s t u I s k u w m u k o p l h u I o t r f d c v b n m k l o I u y t r e
G t r e w s a d f g h j j k l m n b v c x z f g h j k li I u y tr r e o u y r r
O o p y t r I o u y t j k l m n b v c x zz z z w w t t y y y u g gd d s e
r f b n m k I u j h o p u y t r n j u I o u y t r f g h j h h j k I o u y m n
O I u h j n h y m k j u y t m k iu y t h g f ds d f r e s d f re s d f r e s
d c v g t y h b v c z z x e w s d f r p o I l m k j u n h y g b n j u y h
m k I o l p m n b j u y h g t I o p l m nj j I u j k m n j I k m n j I I o r
t g b v f r t y h b v g t y h b g t y h b v f r u I o k m n j I o p l m n j I
Q w e er d s a q w e r d c f v g t yu h b u I o j k m n h yu I o l o p p
N bc v b n m x c v b n x c v g t r f v b nm c f r t g t y h b vc x d e s
I. KTIKARI
II. PVESHUR
III. STIWA
IV. NTASHKEEV
V. LUVPI
KRITIKA
PURVESH
SWATI
VENKATESH
VIPUL
(Do Mulgi Teen Mulge)
(Do Mulgi Teen Mulge)
Kritika jaInnKritika jaInn
Purvesh mogHe
Purvesh mogHe
Swati hasiJaa
Swati hasiJaa
Venkatesh viswanaThan
Venkatesh viswanaThan
Vipul raWallVipul raWall
Team - D
ecrypter
s
OV
ERV
IEW
OV
ERV
IEW What is Debt Capital?
What is Debt Capital?What are types/sources of Debt
What are types/sources of Debt
Capital?Capital?Debt Capital v/s Share Capital
Debt Capital v/s Share Capital
What is Cost of Capital?
What is Cost of Capital?
CapitalCapital
ShareDebt
Internal
Debt
Capit
al
Debt
Capit
al
Debt capital is the money borrowed for a
fixed period of time at
a specific interest rate.
Types o
f Debt C
apita
l
Types o
f Debt C
apita
l LoansLoans
- private- private(banks, institutions)
(banks, institutions)
- non-transferable
- non-transferable
Bond/Debenture
Bond/Debenture
- public - public (individuals and
(individuals and
institutions)institutions)
- transferable
- transferable
Mr. ZooZee meets Master Shifu
Share
Capit
al
Share
Capit
al
v/s
v/s
Debt
Capit
al
Debt
Capit
al OwnershipFaith FactorRisk QuotientRepaymentCost of Capital
Debt Capital v/s Share CapitalDebt Capital v/s Share Capital
Ownership
OWNERSHIP
OWNERSHIP
Share Capital – Share Capital – ‘owned’ ‘owned’
Debt Capital – ‘owed’ Debt Capital – ‘owed’
Debt Capital v/s Share CapitalDebt Capital v/s Share CapitalFa
ith F
acto
r
Ownership
FAITH FAITH FACTOR
FACTOR
Share Capital –’faith’ Share Capital –’faith’
Debt Capital – ‘no faith’Debt Capital – ‘no faith’
Debt Capital v/s Share CapitalDebt Capital v/s Share Capital
Faith
Fac
tor
Risk Quotient
Ownership
RISKRISK QUOTIENTQUOTIENT
Share – onus on Share – onus on shareholders shareholders
Debt – rated by agencies Debt – rated by agencies
Debt Capital v/s Share CapitalDebt Capital v/s Share Capital
Faith
Fac
tor
Risk Quotient
Repay
men
t
Ownership
REPAYMENT
REPAYMENT
Share – cannot claim Share – cannot claim moneymoney
Debt – repayment on Debt – repayment on maturitymaturity
Debt Capital v/s Share CapitalDebt Capital v/s Share Capital
Faith
Fac
tor
Risk Quotient Rep
aym
ent
Cost of
Capital
Ownership
Share – Dividend (iff Share – Dividend (iff profit)profit)
Debt – fixed interest rate Debt – fixed interest rate (no matter what)(no matter what)
COST OF COST OF CAPITALCAPITAL
Debt Capital v/s Share CapitalDebt Capital v/s Share Capital
Faith
Fac
tor
Risk Quotient Rep
aym
ent
Cost of
Capital
Ownership
Cost
of
Capit
al
Cost
of
Capit
al
CoC = CoS + CoD + CoI
Dividend
Zero
Interest
0 – 100% (or even more) on the Face Valueand not on the Issue Price
~ 10%
Debt Capital v/s Share CapitalDebt Capital v/s Share Capital
Share Debt
WA
CC
/IR
RW
AC
C/IR
R
WACC – WACC – Weighted Avg. of Weighted Avg. of
Cost of CapitalCost of Capital
IRR – IRR – Internal Rate of ReturnInternal Rate of Return
DhanyawaaDhanyawaadd
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