Explain about the equity claims in the financial security, Financial Management

Assignment Help:

Explain about the equity claims in the financial security.

Equity classifies claims to shares into the net income and assets of a firm, and they do not contain a maturity date. But into terms of economic rights, equity claims be different from debt instruments for several purposes.

a. First, firms are not contractually obliged to create periodic payments to equity holders: there payment of dividends is a discretionary conclusion of the firm.

b. Second, firms should pay all their debt holders before they create any payment to equity holders: thus equity holders are residual claimants.


Related Discussions:- Explain about the equity claims in the financial security

Parity conditions, Parity Conditions A parity condition defines the rel...

Parity Conditions A parity condition defines the relative value of one country's currency to the other country's currency. The condition states how, for the example, difference

What are agency problems, What are agency problems? and between what two st...

What are agency problems? and between what two stakeholders do agency problem typically occur?

Define supply curve for a good is totally inelastic, Suppose the supply cur...

Suppose the supply curve for a good is totally inelastic.  If the government imposed a price ceiling below the market-clearing level, would a deadweight loss result?  Explain.

Steps in budgetary control, STEPS IN BUDGETARY CONTROL 1. Quantificati...

STEPS IN BUDGETARY CONTROL 1. Quantification of plans in relation to sales, production, distribution and finance in terms of objectives and goals set by the management. That i

Meaning of capital budgeting, Meaning of Capital Budgeting Decisions r...

Meaning of Capital Budgeting Decisions relating to irreversible commitment of funds to projects whose profits are to be reaped over a time span longer than the current account

Saving and lone assocition, what is saving and lone function in ethiopian c...

what is saving and lone function in ethiopian context

What do you mean by utility, Q. What do you mean by Utility? Utility: -...

Q. What do you mean by Utility? Utility: - Financial leverage assists considerably the financial manager while devising the capital structure of the company. A high financial l

Operating cycle, discuss the applicability of an operating cycle to poultry...

discuss the applicability of an operating cycle to poultry business in uganda.

The time value of money , Calculate the present value and determine the npv...

Calculate the present value and determine the npv, Financial Management. Assume today is 3 December 2009. Helen is 30 years old and has a Bachelor of Business. She is currently em

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd