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Can a merger be considered a means of raising additional equity capital?
Wiki User
∙ 14y ago
Yeah, in some case it is considered as a means for raising additional capital but only in the case when one of the companies is financially strong then such a merger is profitable and according to activetrader-links.com if two companies with same strengths or weaknesses do a merger then such a merger will be in vain.
Wiki User
∙ 14y ago
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What is capital raising?
Capital raising is the act of obtaining any form of capital in the capital structure, whether debt or equity. References: <a href="http://www.pegasusics.com/capital-raising.php">Capital Raising</a>
What does all-equity mean?
The meaning of an all-equity firm is one that has raised its entire capital through the sale of shares. This is form of raising capital is known as equity financing.
Which element in financial statements includes additional paid-in capital?
equity
Is additional paid in capital refers to a firm's retained earnings?
Additional paid in capital (or APIC) is a component of the shareholders equity section of the balance sheet. Retained earnings is a separate component of shareholders equity.
What part of the elements of financial statements does additional paid-in capital belong to?
equity
The stockholders' equity section is usually divided into what three parts?
capital stock, additional paid-in capital, retained earnings
Equity sources of corporate fund raising?
equity sources of corporate fund raising
Does additional paid-in capital belong in a balance sheet?
All kind of capital is related to and shown under equity section of balance sheet.
Types of working capital?
Equity Capital,Debt Capital,Specialty Capital,Sweat Equity
What increases and what decrease capital or owners equity?
Increase capital through additional investment of the owner, increase in income Decrease capital through withdrawal of the money made by the owner, incur losses
What is meant by a flexible capital structure?
Capital structure which keeps room for expansion or reduction of capital is called as flexibile capital structure. Exapnsion is easy. Shares and redeemable debentures can be used as securities for raising the finance.so that in future the capital can be reduced. A mix of a company's long-term debt, specific short-term debt, common equity and preferred equity. The capital structure is how a firm finances its overall operations and growth by using different sources of funds. Debt comes in the form of bond issues or long-term notes payable, while equity is classified as common stock, preferred stock or retained earnings. Short-term debt such as working capital requirements is also considered to be part of the capital structure.
Where do you place capital appreciation on the balance sheet asset or an equity entry?
Capital is an equity of company so capital appreciation is also come to equity part of balance sheet.
