This article will help you to make comparison between over-capitalisation and under-capitalisation. Comparison # Over-Capitalisation: This state of affairs for a concern occurs where the amount of the shares issued is much in excess of actual requirement, and thus the rate of profit, i.e., the dividend rate will be too low to allow the shares to sell at par value. [...]
This article throws light upon the top twelve methods used for raising finance for a company. The methods are: 1. Shares 2. Debentures 3. Public Deposits 4. Managing Agents 5. Loans from Banks 6. Ploughing Back of Earnings 7. Hire Purchase 8. Leasing 9. Profit Flowback 10. Credit Facilities 11. Trade Credit 12. Short Term Loans. Method # 1. Shares: [...]
After reading this article you will learn about:- 1. Meaning of Capital Investment Decisions 2. Significance of Capital Investment Decisions 3. Techniques used. Meaning of Capital Investment Decisions: Investment means laying out the money (also known as outlay) on an activity or a project with the expectation of some benefit. In an enterprise, expenditure may be either: (a) To carry [...]