Financial Management -Difference Between watered capital and over capitalisation, Summaries of Financial Management

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Financial Manageme, P 34 een Over-Capitalisation ‘ and Watered Capital rence betw on and watered capi pital are not one and the same. The m i i Pl >main points Diffe Over-capital isati are as follows: of distinctio t Watered Capital |. Itarises us i - ae at the time of promotion of a} 1. It is f Over-Capitalisation 9 S found aft smd sea er the company has worked for 2. It may or may not result in over Ca itali . p isation| 2 A com 7 3. It is concerned with reali ha isabl ra itali are e ne of assets | 3. It ae ze ee Dotennant! i pee to the real value of assets as determi earning capacit y of the company.