Question

What is over capitalisation??

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Answer 1

Answer:

Overcapitalisation or Overcapitalization, refers to an economic phenomenon whereby the valuation/price of an asset is superior to its ‘real’ value, however difficult to define, therefore putting a strain on attempts to obtain a reasonable return on investment.

Explanation:

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Answer 2

Bhai aap konse class mein ho?

Overcapitalization occurs when a company has issued more in debt and equity than its assets are worth. If this is the case, the market value of the company is less than the total capitalized value of the company....