Which one is best to company either debt or equity?
Answer Posted / azwar.j.khan
For a company neither 100%equity nor 100%debt is good.Its
all depend upon n-number of factors such as company current
status,its nature of business,its future prospects etc.but
the ideal is 1:1 ratio.I would like to add that this ideal
ratio is not fixed it should change as per the need.
Both equity and debt has its own features, such as equity
fund means company do not have to return the principal
amount during life time of the company and no pressure to
give dividend,but the holder has the right to book more
profit through its share price,and to participate in AGM and
can give their views.
Debt fund make pressure for returning principal amount at
the time of maturity and to pay back the interest at regular
interval, at the same time it help on "TRADING ON
EQUITY".Which help the share holder and the company on the
long run
Is This Answer Correct ? | 3 Yes | 0 No |
Post New Answer View All Answers
Why does one need a broker?
Expand BEMS
Expand DEHM
what are the types of provisions that you would make for the end of a financial year?explain
what is balance sheet, capital budgeting, financial statements, current ratio, profit maximization?
can i have practical examples of AS-30
what is mba tell me the more benefits in mba
With a 600 credit score, how to improve my credit rating score?
For the production of 10,000 units the following are the budgeting expenses: Per Unit Rs. Direct materials 60 Direct labour 30 Variable overhead 25 Fixed overhead (Rs.1,50,000) 15 Selling expenses (10% fixed) 15 Variable expenses (direct) 5 Administrative expenses (Rs.50,000 fixed) 5 Distribution expenses (20% fixed) 5 Total cost of sales per unit 160 Prepare the flexible budget for the production of 6,000 , 7,000 ,and 8,000 units of production
why should the company give first perference to the perference shareholders?
Distinguish capital and Revenue receipts
(a) Rajesh Ltd. gives you the following information for the year ended 31st March, 2006: (i) Sales for the year Rs. 48, 00, 000. The Company sold goods for cash only. (ii) Cost of goods sold was 75% of sales. (iii) Closing inventory was higher than opening inventory by Rs.50,000. (iv) Trade creditors on 31.3.2006 exceed the outstanding on 31-3.2005 by Rs. 1, 00, 000. (v) Tax paid during the year amounts to Rs. 1, 50, 000. (vi) Amounts paid to Trade creditors during the year Rs. 35, 50, 000. (vii) Administrative and Selling expenses paid Rs. 3, 60, 000. (viii)One new machinery was acquired in December, 2005 for Rs. 6, 00, 000. (ix)Dividend paid during the year Rs. 1,20, 000. (x)Cash in hand and at Bank on 31.3.2006 Rs. 70, 000. (xi) Cash in hand and at Bank on 1. 4.2005 Rs. 50, 000. Prepare Cash Flow Statement for the year ended 31.3.2006 as per the prescribed Accounting Standard. (b) Define the teen "Operating Activities", "Investment Activities" and "Financing Activities" as per NA S-3 Send me this question answer in my mail Address please help me to how solve the question ( deepakgaire@gmail.com) plese plese
Exapnd--------RAN
Sir i am working in 3 star hotel as a senior accountant i need some general letter drafts pleas do the need ful
why do you want to work here?