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Why are Stockholders of a company more reluctant to finance expansion through issuing more equity?
Stockholders may be reluctant to finance expansion through issuing more equity because it can dilute their ownership percentage and voting power in the company. Additionally, issuing new equity might signal to the market that the company is struggling to generate sufficient internal funds, potentially leading to a decline in stock prices. Lastly, existing shareholders may prefer that profits be reinvested or returned as dividends rather than being used for expansion funded by new equity.
What else can I help you with?
What is the difference between debt and common stock?
Companies need to finance their business plans. In order to finance them, the company can either go for debt or issue shares or issue bonds to get the required investment. Debt can be in the form of loans where as common stock is issued to give share in the company to the stockholders.
What are the advantages of share capital?
It is beneficial for a company to have share capital because it is an alternative source to finance expansion projects. Money gained from share capital can also be used to buy new machinery for the company.
When was Home Finance Company created?
Home Finance Company was created in 1990.
How did the stockholders agreed to finance the Pilgrims voyage?
The stockholders, primarily members of the Merchant Adventurers, agreed to finance the Pilgrims' voyage by pooling their resources to cover the costs of the expedition, including the purchase of the Mayflower and supplies for the journey. In return for their investment, the stockholders sought a share of the profits from any goods or resources the Pilgrims could produce in the New World. This financial arrangement was crucial in enabling the Pilgrims to undertake their journey to America in 1620.
Expansion of hdfc?
Housing Development and Finance Corporation
Which financial statement would best indicate whether the company relies on debt or stockholders' equity to finance its assets?
Balance Sheet
The stockholders agreed to finance the Pilgrims voyage in what two ways?
The stockholders agreed to finance the voyage by providing supplies, by allowing the Pilgrims to settle on land belonging to the London Company, and by guaranteeing them religious toleration in the colony of Virginia. In return, the profits for the first seven years were to be divided among the shareholders.
What is the difference between debt and common stock?
Companies need to finance their business plans. In order to finance them, the company can either go for debt or issue shares or issue bonds to get the required investment. Debt can be in the form of loans where as common stock is issued to give share in the company to the stockholders.
What are the problems of agency theory?
The agency problem is a conflict of interest inherent in any relationship where one party is expected to act in another's best interests. In corporate finance, the agency problem usually refers to a conflict of interest between a company's management and the company's stockholders.
What is the expansion of DLF?
delhi land and finance
What are the advantages of share capital?
It is beneficial for a company to have share capital because it is an alternative source to finance expansion projects. Money gained from share capital can also be used to buy new machinery for the company.
When was Home Finance Company created?
Home Finance Company was created in 1990.
How did the stockholders agreed to finance the Pilgrims voyage?
The stockholders, primarily members of the Merchant Adventurers, agreed to finance the Pilgrims' voyage by pooling their resources to cover the costs of the expedition, including the purchase of the Mayflower and supplies for the journey. In return for their investment, the stockholders sought a share of the profits from any goods or resources the Pilgrims could produce in the New World. This financial arrangement was crucial in enabling the Pilgrims to undertake their journey to America in 1620.
What is OASIS finance?
A finance company. Location:
Expansion of hdfc?
Housing Development and Finance Corporation
Is Finance England the name of a company?
There is a company called Student Finance England, could that be what you are referring to? There does not seem to be a company that is just called Finance England, however.
How do you get a finance company to finance your customers?
some are asking for their friend to invest with their company with interest.
