GET BETTER GRADES the high proportion of equity favorably as the investors in equity (being owners) only pose a residual claim on the assets of the business after(prenominal) meeting the claims of lenders (in the event of bankruptcy). However, in return such equity holders (especially large investors or institutions) may seek a great say in the management through nominees on the card of Directors. Further, the returns to the equity holders would arise in the form of dividend (out of the distributable profits) and capital dupe through enhanced value of their investment due to the incumbent performance and future prospects of the business. Thus, investors in equity are unforced to be subject to higher levels of risk in return for prospects of high level of returns. The main characteristics of an equity instrument are thus as follows: * Can be floated at feel value or at a premium found on the valuation of the company and the portion of the equity offered... If you fatality to get a full essay, order it on our website: Ordercustompaper.com
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