Over-Capitalization Assignment Help to make the Homework Easy for Students
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Over-Capitalization is the condition where the company’s actual profits turn out insufficient to meet the dividends on shares, or interests on loans and debentures. When a company raises more capital than required, a portion of that capital is bound to remain idle. As a consequence, there is a downfall in the rate of return.
Over-Capitalization can be attributed to a number of causes:
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