Question

what is over capitalisation​

Answer 1

$Over <space> capitilisation is a financial situation where a company has more than enough total capital as compared to the needs of it's business operations.$

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Answer 2

$\huge \mathfrak \red {answer}$

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$\huge \bold\green {Over }$

$\huge \bold\orange {Capitalisation}$

Overcapitalization occurs when a company has issued more debt and equity than its assets are worth. The market value of the company is less than the total capitalized value of the company. An overcapitalized company might be paying more in interest and dividend payments than it has the ability to sustain long-term.

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