jacksparrow

Did you read my post? Capital is interest bearing debt + equity.

DarienHacker Wrote:
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> > I've seen capital refer to Equity. What is the
> CFA definition for capital?
>
> As indicated above, in the CFA world "capital"
> generally refers to debt capital + equity capital.
>
>
> But you're also right that "capital" can be
> defined like this: "Accounting: The remaining
> assets of a business after all liabilities have
> been deducted; net worth." And if you're talking
> about financial institutions or studying for your
> FRM or PRM, "capital" almost always means "equity
> capital". Go figure.
>
> After a while you'll get the hang of which usage
> is the default in your particular corner of
> finance.