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Development Banks and Financial Institutions
There are some sectors in the economy such may not secure adequate funds from commercial banks for different motives.
a) May receive a long time to understand returns
b) High risk associated along with such sectors
c) Unattractive or low return
d) Uncertainty otherwise highly volatile returns
e) Necessitate heavy investment in infrastructure
These sectors involve as:
Classification of Preference Share Capital i) Redeemable Class Redeemable preferential shares are bought back via Issue Company after minimum redemption duration however
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Example of Capital Structure of a Company Example Company XYZ restricted has the given capital structure as: 10,000 Sh.10 ordinary shares 10,000
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Book Value and Market to book value per share Book value per share (BVPS) = Net worth Equity/No. of ordinary shares It is called also liquidity ratio that show
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