Sentences with phrase «cheaper than equity»

Thus, since debt interest is tax - deductible and debt finance thus initially cheaper than equity finance, companies borrow money until it is almost impossible for them to borrow any more, even in a bull market for their services.

Debt is cheaper than equity, given debtholders are paid first in the hierarchy of a hypothetical liquidation bankruptcy scenario.

If you only want to borrow a small amount and you can meet the repayments out of your usual income, an unsecured loan may be cheaper than an equity release scheme.

Funding with debt is usually cheaper than equity because interest payments are deductible from a company's taxable income, while dividend payments are not.

Many entrepreneurs make the mistake of thinking taking on debt is cheaper than equity and that it prevents more dilution.

Not exact matches

Taking on debt is also cheaper in the long run than the time and consulting fees involved in selling equity in a company.

Second of all, if your company is growing at 10 % month over month, paying 15 % a year in interest is MUCH cheaper than selling equity that is growing at 200 % + a year.

While the pace of monetary tightening is likely to be gradual, more than a few investors are worried about the equity impact of any marginal tightening, believing that the entire edifice of today's bull market has been built on a foundation of cheap money.

Also, European equities appear to trade at relatively cheaper valuations than U.S. equities and offer a higher dividend yield.

Brazilian equities, as measured by the MSCI Brazil Index, are 20 percent cheaper than their 2014 highs on a price to book basis.

''... though the value equation has usually shown equities to be cheaper than bonds, that result is not inevitable: When bonds are calculated to be the more attractive investment, they should be bought.»

Equity factors can be valued using fundamental metrics Value and Size are cheap while Low Volatility and Growth are expensive Likely more meaningful for medium - to long - term than short - term investors INTRODUCTION The term «Factor Investing» reached an all - time high this year according to Google

The VA funding fee is likely to be cheaper than private mortgage insurance if you have less than 20 percent home equity, especially if your credit score isn't stratospheric.

At current levels, Japanese equities are both absolutely and relatively cheap; the equity risk premium is about 7.8 % and the forward price / earnings ratio is less than 13.

The price - to - sales ratio makes highly leveraged companies appear cheaper than they really are, since equity makes up a smaller part of their capital structure.

The FTSE 100 is cheaper to Global Stocks versus 20 - year norms than any of the 30 most liquid global equity indices we track.

Fund managers believe there is scope for private equity or trade buyers to buy Masters on the cheap, in the same way that Anchorage Capital Partners paid $ 94 million for Dick Smith in 2012, only to float it two years later for more than $ 500 million.

The MSCI EM equity index is trading at roughly 1.35 x book value, more than 50 % cheaper than the S&P 500, as Bloomberg data shows.

Besides, auto loans are now one of the few types of consumer loans that are cheaper than home equity loans or lines of credit.

Like most Schwab ETFs, SCHD is extremely competitive from a cost perspective; this ETF is cheaper than the vast majority of other products in the All Cap Equities ETFdb Category.

We suggest that investors seeking higher returns consider boosting their overall equity allocation rather than chasing the illusory size premium in an attempt to add risk on the cheap within the existing allocation.

The cost of borrowing money against the equity of your home is considerably cheaper than other loan options.

Additionally, while mutual funds vary in operating expenses, they still are substantially cheaper than the buying into a hedge fund or private equity vehicle.

Although it feels good to be closing in on a portfolio value of $ 150,000, I'd much prefer a natural correction in the stock market which would allow my current capital (which is more limited than usual) to go further by being able to purchase cheaper equities with higher yields.

But even if people today don't actually pay down the mortgage balance, in the event of an unexpected expense, tapping into the equity in the home is almost always much cheaper than tapping into that 401 (k)(the latter subject to penalties and taxes).

For instance, the Social Housing Canadian Equity Fund A has an MER of 1.17 %, which is not the cheapest, but is actually a lot more affordable than many of the bank mutual funds you'll encounter.

The cost of borrowing money against the equity of your home is considerably cheaper than other -LSB-...]

@Be» en — if you're comfortable doing Norbert's gambit, holding US - listed global equity ETFs in your RRSP is still likely to be cheaper than holding Canadian - domiciled ones over the long term.

If the company can continue to clock up even a fraction of its YTD return on equity, it more than deserves to trade on at least 2/3 times book — which would still offer a cheap ground - floor entry price to a sector that trades at much higher multiples on average — hence my 13.7 p & 23.6 p price targets (vs. 6.875 p per share today).

Home improvement loans start at 4.99 % APR with AutoPay, making them cheaper and easier than a home equity loan.

Good, but your prior policies fostered debt - based finance, because recessions were never allowed to get too deep, and businessmen rationally chose to finance with cheaper tax - deductible debt, rather than expensive equity, because they concluded that the Fed would not allow big crises to happen.

Moreover, though the value equation has usually shown equities to be cheaper than bonds, that result is not inevitable: When bonds are calculated to be the more attractive investment, they should be bought.

Also, since you still earn the appreciation on your investment despite using the equity that paid for the investment, it may be cheaper than drawing money out of your retirement accounts as that money used will no longer see a return.

Mezz is much cheaper than adding equity partners, who demand returns of more than 20 %.

The consensus among real estate professionals is that incorporating mezzanine financing into a funding strategy has become cheaper than obtaining more equity.

While the initial yields for new construction tend to be lower, these firms have access to cheaper capital than they did when they started out a few years ago; some have raised equity or obtained financing from government - sponsored enterprises.

If you're thinking of investing in Hawaii real estate, you may not find a better time than NOW to get some cheap high - equity deals out there.

While taking on a home equity loan may cheaper than racking up credit card debt, it's not a tool you should use on a whim.

Equity investors are happy to give more money to REITs to invest: most of the investment trusts are trading at prices higher than the accounting value of their assets, meaning stock issuance is relatively cheap for them.