Recently while appraising a loan proposal I noticed that the
company was a newly formed company. While allotting the
capital among the share holders the shares were allotted at
a huge premium. What is the reason for showing a huge premium?

Answer Posted / sachin

THE NEWLY EXSTABLISHED COMPANY SHOULD BE A SISTER CONCERN
OR A SUBSIDIARY OF AREPUTED COMPANY

Is This Answer Correct ?    1 Yes 3 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

Is it possible to list only a portion of Equity Shares leaving the balance as unlisted?

2632


what is the abrevation for JJ in form jj

1452


STATE THE DIFFERENCE BETWEEN BANKING FIS AND NON BANKING FIS

2162


I want to know that , If we called a person for one day for drive our company van or any other purpose. so how it will accounted in our (i.e companies) Books of accounts....

830


sir i want aao lic exam model question paper

2374






I am Simrat Kaur. I am persuing graduation from P.U. I have an experience of 14 months as a CSA. But i hav an experience letter of 6 months.But I can show my joinin letter of the other job. I hav knowledge of basics of computer & internet. Actually, m findin job in chandigarh. I am findin the right opportunity. so, Can u plz help me in findin the right job?? Can u plz tel me abt where interviews r goin on?

1984


STATE & EXPLAIN THE IMPACT OF GLOBAL FINANCIAL CRIS ON CEMENT SECTOR IN INDIA:

1836


hat is the meaning of the capital ique,and hat is capital,and ahat is ique

2113


Is form 38 mandatory to issue c form in up. thru online mode

1340


Does any one attented HSBC audit compliance test? Please let me know asap. suraj

2337


Can anybody tell when sbh dispatches appointment letters for Clerical for people completed medical and scrutiny of documents on 15/08/09?

1903


How does a bank or financial institution calculate COGS? What are the 'direct' costs of a loan or deposit revenue operation?

7521


I want to validate Customer credit payment with customer invoice, When billing time, the system check the customer credit payment, if customer credit is lesser than customer bill, system should not allow the billing further process. Can I configure in sap

1663


In the case of Internal Reconstruction of company Accrued Int. On debenture / Outstanding int. On debenture transfer or not in capital reduction a/c . Explain

1087


Occasionally it is said that issuing convertible bonds is better than issuing stock when the firms shares are undervalued. Suppose that the financial manager of Decent Furniture Company does in fact have inside information indicating that the decent stock price is too low. Decent furniture earnings will in fact be higher than investor’s expectations. Suppose further that the inside information cannot be released without giving away a valuable competitive secret. Clearly, selling shares at the present low price would harm Decent’s existing shareholders. Will they also lose if convertible bonds are issued? If they do lose in this case, is the loss more or less than it would be if common stock is issued? Now suppose that investors forecast earnings accurately, but still under value the stock because they overestimate Decent’s actual business risk. Does this change your answer to the questions posed in the preceding paragraph? Explain.

2210