_______is particularly useful for enterprises that are legally structured as non-profits and therefore cannot obtain equity capital.

Quasi-equity debt security

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Loan security

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Deemed security

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All of the above

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Solution

The correct option is A Quasi-equity debt security
Quasi equity debt security posses the characteristics of both equity and debt. It is particularly useful for enterprises that are legally structured as non profits and therefore cannot obtain equity capital.

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Similar questions

Q. ________ is particularly useful for enterprises that are legally structured as non-profits and therefore cannot obtain equity capital.

Q. The amount of debt, equity share capital, preference share capital are __________ by financial decisions, which is a part of financial management.

From the following, calculate (a) Debt Equity Ratio (b) Total Assets to Debt Ratio (c) Proprietary Ratio.

	Rs
Equity Share Capital	75,000
Preference Share Capital	25,000
General Reserve	45,000
Accumulated Profits	30,000
Debentures	75,000
Sundry Creditors	40,000
Outstanding Expenses	10,000

Q. "Ranbaxy Ltd. has been earning handsome profits since last 15 years. Company enjoy fair goodwill in the market, so company can easily arrange debt as well as equity from the market, whenever needed. Therefore company decided to declare dividend with a hike of 15 % from last year.
Which two components affecting dividend decision have been highlighted in the above paragraph.

The following particulars are extracted from the Balance Sheet of Goodwill Enterprises Ltd. as at 31st March, 2018 :

$\begin{matrix} Particulars & Rs. Equity Share Capital & 3,00,000 10 % Preference Share Capital & 1,20,000 Capital Reserve & 60,000 Profit & Loss Balance & 1,20,000 12 % Debentures & 50,000 10 % Mortgage Loan & 1,50,000 Current Liabilities & 2,80,000 Non Current Assets & 4,80,000 Current Assets & 6,00,000 \end{matrix}$

Showing the full working, calculate the following ratios :

(i) Debt-Equity Ratio

(ii) Proprietary Ratio

(iii) Interest Coverage Ratio

Net Profit after interest and tax amounted to Rs. 63,000

Rate of Income Tax was 50%

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_______is particularly useful for enterprises that are legally structured as non-profits and therefore cannot obtain equity capital.

The correct option is A Quasi-equity debt securityQuasi equity debt security posses the characteristics of both equity and debt. It is particularly useful for enterprises that are legally structured as non profits and therefore cannot obtain equity capital.

The correct option is A Quasi-equity debt security
Quasi equity debt security posses the characteristics of both equity and debt. It is particularly useful for enterprises that are legally structured as non profits and therefore cannot obtain equity capital.