Добавил:
Upload Опубликованный материал нарушает ваши авторские права? Сообщите нам.
Вуз: Предмет: Файл:
ТОПИКИ.doc
Скачиваний:
13
Добавлен:
23.09.2019
Размер:
59.9 Кб
Скачать

20. Decisions about the gearing the company.

When a company is said to be "high geared", the level of borrowing is higher then to its ordinary share capital. Main source of funds for high-gearing are long-term loans from banks and pension funds.

Advantages: secured over fixed assets, better return on net profits in prosperous times.

Disadvantages: high interest payments in difficult times.

A lowly-geared company has borrowings which are relatively low.

Main source of funds of low- gearing are: owners capital, venture capital, unlisted securities market and stock exchange.

Advantages: low gearing claim on all profits, does not interfere in company, outside investors? No loss of control.

Disadvantages: low gearing demand very high rate and it is most exposed.

7