Overcapitalization and Undercapitalization: Definition, Theories, Causes, Effects, Remedies
If remedies are not undertaken to cure the financial health of an over-capitalised company; it will meet with an untimely death. (iii) There is usually, unhealthy speculation, in the shares of an over-capitalised company; which, in turn, brings a bad name to the company. (iv) Management should follow a conservative policy in declaring dividend and […]