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Classification of equity shares using Subscribed Share Capital
Subscribed Share Capital
It is that part of the issued capital that an investor accepts and agrees upon.
Classification of equity shares using Issued Share Capital
Issued Share Capital
It is that part of the authorized capital that the company offers to the investors.
Classifications of equity shares using the authorized share capital
Authorized Share Capital
It is the maximum amount of capital that a company can issue. The companies can increase it from time to time.
For that we need to comply with some formalities…
calculating preference shares
Calculating the cost of preference share capital
The cost of preference share capital is that part of the cost of capital in which we calculate the amount payable to preference shareholders in the form of dividends with a…