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- They are not popular among investors hence the company is not sure of raising adequate capital
- Debentures holders earn a fixed rate of interest regardless of the profits made by the company.
- They attract high interest making them an expensive source of finance.
- Some are redeemable which can inconvenience the company as it refunds the capital.
- Some are secured against the assets of the company which can easily be lost incase of inability to pay.
- Debenture holders can sue the company if not paid their interest leading to liquidation of the company.
- Debentures holders do not participate in decision making hence they do not assist the company (in decision making) no matter how good they may be.
Kavungya answered the question on September 27, 2019 at 08:45
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Rate of stock turnover 3 times
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Mark-up 20%
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Date posted: September 26, 2019. Answers (1)
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Date posted: September 26, 2019. Answers (1)
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Date posted: September 26, 2019. Answers (1)
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Additional information:
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Additional information:
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Sh
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Sh
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Current assets - 420,000
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Current liabilities - 440,000
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2012
January 1 – Balance b/d - cash...(Solved)
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2012
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- bank sh 25,000
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Date posted: September 26, 2019. Answers (1)
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Date posted: September 26, 2019. Answers (1)
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State the type of insurance policy described in each case.
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d)Covers goods and money lost in private and commercial premises.
Date posted: September 26, 2019. Answers (1)
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shs
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shs
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Opening stock 285,000
Sales 2,400,000
Purchases 1,830,000
Expenses 360,000
Closing stock 315,000
Fixed assets 400,000
Debtors 900,000
Bank 35,000
Current liabilities 438,000
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iii) Return on capital employed
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Date posted: September 26, 2019. Answers (1)
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Required,
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