determine how the firm is financing investment in assets: long-term debt, preferred stock, and common stock...
determine how the firm is financing investment in assets: long-term debt, preferred stock, and common stock
This question is based on Estee Lauder 2018 balance sheet
Homework Answers
Answer:
Estee Lauder is a US company that is into makeup, skin care, fragrance and hair care products. It is a multinational company, founded in 1946.
Long term debt is a liability for company. Company uses long term debt to finance its assets. Company has taken huge loan and it has to pay higher interest on it.
Common share capital is the capital, issued by company that represents ownership in the company. Company's common equity/Total Assets = 37.30%
Firm finances its investment in assets through Long term debt and common stocks too. As per company's balance sheet 2018, company has:
- Long term debt- $3.36 Billion
- Common share capital- $4.69 Billion
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