Accountancy, asked by neha2002k20, 6 months ago

Conditions
over capitalisation

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Answered by harshad2240

0

Answer:

Overcapitalization occurs when a company has more debt than its assets are worth. A company that is overcapitalized may have to pay high interest and dividend payments that will eat up its profits. This may not be sustainable in the long term. Ultimately, a company that is overcapitalized may face bankrupt.

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