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Company why should issue Debentures and shares,
Which one should issue better for company and why?
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Answer / alluri srikanth reddy
to raise capital it issue debentures and shares but if
interest is low, company should go for issuing debentures
because if it issue shares ownership dilutes it results
decrease in EPS
| Is This Answer Correct ? | 38 Yes | 6 No |
Answer / vibha goyal
if the rate of interst is less than tha company should
issue a debenture beacuse there is a low risk .but if
interst is to much high than company should issue share
| Is This Answer Correct ? | 32 Yes | 4 No |
Answer / priya sharma
To raise its Finance most of the companies need to issue
Debentures & Shares.
| Is This Answer Correct ? | 21 Yes | 8 No |
Answer / ashish shrivastava
To raise its Finance companies can issue Debentures &
Shares. But both of the option can depand on the current
and future market position because if the current interest
rate in financial market is low so company can issue the
debenture but if the eps of their share price is high so
company can issue thier share with high premium and
increase its market price of the share.
| Is This Answer Correct ? | 13 Yes | 0 No |
Answer / supriya
to raise capital company can issue debentures and
shares.for a new firm it is better to issue shares rather
than debentures because at initial stage the company may
not be able to pay interest.whereas for an existing company
it is better to issue debentures because they may be able
to repay amount for debenture holders and then they can
utilize profits and increase their shareholders wealth
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / ashutosh trivedi
when company needed money then it issues the debenture and
shares but this is depend upon the companies financial
position that it shoud issued the debenture or share.
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / suman sharma
The company raises capital/finance using 2 methods.
1)Internally.
2)Externally.
Internally the finance is raised by the issue of the
debentures that is raising the money on intrest from the
borrowers.
Externally the finance is raised by the issue of the
shares,preference shares and equity shares.
| Is This Answer Correct ? | 11 Yes | 7 No |
Answer / rakesh
While deciding between shares and debentures the following
pionts needs attention-
1) Whether a company wants to dilute the existing ownership
or to increase the dedt.
2) The earning capacity of the company.
3) The rate of interest on bonds and the expected divident
payout.
4) Tenure-Long term(shares) or short term(debentures)
5) Reputation of the company.
All the above are some key points. The decision is
usually based on multi-attributes.
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / vishal pandey
new firm it is better to issue shares rather
than debentures because at initial stage the company may
not be able to pay interest.whereas for an existing company
it is better to issue debentures because they may be able
to repay amount for debenture holders and then they can
utilize profits and increase their shareholders wealth.
through this process we can maintain companies EPS.
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / d pandu
company issue the shares and debentures to raise the funds
its needed to run the company
| Is This Answer Correct ? | 1 Yes | 1 No |
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