7:10 Sir you said We can get money from Equity shareholders and pay off Debentures but consider this: In case of non-recession situation. 1. The debenture is what giving the firm ability to earn such higher rate of return on it's capital 2. Equity shareholder invest in the company because they are attracted to such high rate of return 3. Why would a equity shareholder invest more money in the firm if He knows that his investment will be used to un-gear the company and would reduce overall rate of return of the firm??
That's why the sole focus of companies in this unprecedented situation caused by CORONA is to pare debt and preserve liquidity, since the ROCE is expected to fall. Furthermore companies are incorporating cost saving measures
Enormous clarity sir thank you ❤️
7:10 Sir you said We can get money from Equity shareholders and pay off Debentures but consider this: In case of non-recession situation.
1. The debenture is what giving the firm ability to earn such higher rate of return on it's capital
2. Equity shareholder invest in the company because they are attracted to such high rate of return
3. Why would a equity shareholder invest more money in the firm if He knows that his investment will be used to un-gear the company and would reduce overall rate of return of the firm??
Sir you video is so helpful upload more video for cma inter
I m glad to have a teacher like uhh sir
excellent explanation sir....thank you
That's why the sole focus of companies in this unprecedented situation caused by CORONA is to pare debt and preserve liquidity, since the ROCE is expected to fall. Furthermore companies are incorporating cost saving measures
Thanks a lot sir ...now I came to know why conversion option is attached to debenture or bond ...
How to purchase ca inter fm ?
Sir can please take a small For Objective of Financial Management...in Detail... profit maximization and Wealth Maximization
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