August 2011
Beginner
547 pages
16h 12m
English
Content preview from Fundamentals of Financial Management, Third EditionBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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POINTS TO REMEMBER
- What is capitalisation?
- Capitalisation means magnitude of capital employed in a firm. It is based on the size and value of assets and also on the capitalisation rate.
- What is over-capitalisation? When does it arise?
- Over-capitalisation exists when poor earnings do not justify large amount of capital.
- It emerges when assets are bought at higher prices; when firm set up during boom faces depression; and when earnings drop.
- What are the effects of over-capitalisation?
- Weak financial position
- Fallen market value of shares
- Poor quality/higher price of products
- What is under-capitalisation? When does it arise?
- Under-capitalisation means value of assets being small in relation to the firm’s earnings
- It occurs (a) when ...
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I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.