Different versions of terms - capital, book value capital, example, several, terms, equity

dvilayphet

Capital:
I don't have a full example here but it seems by now that I've seen several versions of what you would refer to as 'capital.' For one, I've seen capital refered to as 'Assets - Liabilities' which pretty much means Equity.

In the schweser notes we have:
debt to capital ratio= (short term debt + long term debt)/ (short term debt + long term deb + total equity)

So here, capital is short term debt + long term deb + total equity

And I think I've seen a few others. Does anyone know if and how to use the different definitions?

Book Value:
In a 'depreciation' context, book value is used interchangeably with carrying value and it is defined as cost - accummulated depreciation.

There is also the financial lease definition: beginning lease value + interest expense - lease payment.

Firm book value: not 100% sure here. Can anyone suggest what the general formula is?

If there are any other definitions for these two terms, please send them over. I'm trying to tie together a few loose ends. Thanks.

neil1234

this question has been asked at least 10 times in the past month, but it is a good one so that's ok.

Capital is equity + interest bearing debt. So Schweser's definition is pretty accurate. Short term debt is interest-bearing, you pay interest on it.

Book value is carrying value.

Hope that helps.