Regarding capitalization
This query is : Resolved
18 January 2015
what is over capitalization....???
18 January 2015
Its a Situation where a firm has more capital than it catered-for or needs. Thus, its assets are worth less than its issued share capital, and the earnings are insufficient to pay dividend and interest. This situation is remedied generally by buying back issued shares (stock) or by paying off debt.
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