Benefits Ordinary Share Capital - Financing

Benefits of using ordinary share capital in the financing

• They facilitate projects particularly long-term projects since they are permanent.
• Its cost is not a legal obligation.
• It lowers gearing stage - reduces chances of liquidation/receivership.
• Used along with flexibility - with no preconditions.
• that finances boost the company's credit and credibility rating.
• Owners donate valuable ideas to the company's operations as during AGM via professionals.

Posted Date: 1/29/2013 3:06:35 AM | Location : United States

Ask an Expert

Related Discussions:- Benefits ordinary share capital - financing, Assignment Help, Ask Question on Benefits ordinary share capital - financing, Get Answer, Expert's Help, Benefits ordinary share capital - financing Discussions

Write discussion on Benefits ordinary share capital - financing
Your posts are moderated

Write your message here..

Related Questions

Cash and bonus issue - dividend, Cash and Bonus Issue - Dividend For a... Cash and Bonus Issue - Dividend For a firm to pay cash dividends, it should contain adequate liquid funds.Though, under conditions of liquidity and financial constraints, a fi

Example of conversion ratio and conversion price, Example of Conversion Rat... Example of Conversion Ratio and Conversion Price ABC Company Ltd books as:   10.000, Sh.20 ordinary share capital 10,000, Shs.10 8% preference share c

Option Pricing, Show that for any constant 0=a=1, C(aK1 + (1-a)K2) = aC(K1)... Show that for any constant 0=a=1, C(aK1 + (1-a)K2) = aC(K1) + (1-a)C(K2) where C(k) is the European option price with strike K. All the options in this question are assumed to be

Financial performance analysis, given profit margin 7%, total asset turnove... given profit margin 7%, total asset turnover is 1.94, Return on equity is 23.7%, what is the debt equity ratio

Public finance, models of solving externalities in 1) external sector 2)pr... models of solving externalities in 1) external sector 2)private sector

Solution to the agency conflict, Solution to the Agency Conflict The g... Solution to the Agency Conflict The government can acquire the following actions to protect itself and its interests. 1. Acquire monitoring costs E.g. the gover

Factors of capital structure, Factors of Capital Structure 1. Availab... Factors of Capital Structure 1. Availability of securities - This influences the company's employ of debt finance that means such if a company has enough securities, so then

Explain financial funds and supply , What does it mean to say that individu... What does it mean to say that individuals as a group are net suppliers of funds for financial institutions? What do you think the consequences might be in financial markets if indi

Determine the weighted average cost of capital, 1. The current interest rat... 1. The current interest rate is 6.83%. CanGo.com's stock has a beta of 2.0. Estimate the cost of equity. 2. CanGo.com has a bond with a semiannual coupon rate of 9% and 5 year m

Management of sole proprietorship, Management of Sole Proprietorship  I... Management of Sole Proprietorship  In sole proprietorship the owner is usually in charge of day to day running of the business. If the business is large he may give some duties