Answer Posted / daalmans llb
Sweet equity is mostly found with Private equity managers and is always involved with normal and preference shares or loans which have a fixed interest. This way the managers get rewarded for making a higher Return on Investment. After the fixed percentages are paid all the extra ROI comes to the normal shares. An example can show how it works:
PE managers have all the normal shares, nominal value 20.000
PE firm places preference shares with ROI of 6% for a value of 0.98 million. (normally this is much higher)
If the ROI on all funds is 10% the total ROI will be 100.000. The PE house gets 0.06 x 980.000 = approx 60.000.
The PE manager will get the other 40.000. With an initial investment of 20.000 het gets a ROI of 200%. Thats sweet (equity)
In Holland there is special tax legislation on this topic. I'm writing my LLM thesis on the subject.
| Is This Answer Correct ? | 10 Yes | 3 No |
Post New Answer View All Answers
Calculate Income Ta X On Nett Income Of Rs 365520 For Men,women And Senior Citizen For The Assessment Years 2009- 10 And 2010-11?
Why closing stock appears both in trading and Balance sheet? Why does it doesnot appear in trail balance.
WHAT IS DIFFERED INCOME TAX AND WHERE IT SHOWS IN BALANCE SHEET?
Sensitive field have been defined and customized for vendor master data. For which of the following sensitive fields will an update trigger dual control?(any 1 answer) Currency Account group IBAN VENDOR ACCOUNT NUMBER
Explain why retained earnings have an opportunity cost associated?
if we have credit 50 % rg23c part ii first and not credit next balance 50 % .when we have do?
Clasify Loss
1.how can carry forward the balance of ledgers to the next financial year in tally erp 9
what is the difference between Assets Allocation & Security selection?
What is meant by retiring Bill
Have you worked with other on team endeavors
sir,how to get strong position in finance .how to get good position in company. qulification.Msc,MBA
Expand---------OST
Expand---------MRDT
what is forecast
