Question
Asked May 23, 2019
12 views

WHAT IS THE EQUITY INVESTMENT?

check_circle

Expert Answer

Step 1

Equity:

 

Equity refers to that part of the company’s capital which is raised by issuing equity shares, it is also known as owner’s equity and it is shown on the liability side of the balance sheet. It can be calculated by deducting the amount of liability from the total value of assets.

Step 2

Equity Investment:

 

Equity Investment refers to the purchase of equity shares of a company. Equity shareholders will get an annual dividend based on the earnings available for equity shareholders. Equity shareholders have voting rights in decisio...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as i...

A: First of all we will start by calculating the rate or capitalization.For specific borrowings we will...

question_answer

Q: Platt Company produces one product, a putter called PAR –putter. Platt uses a standard cost system a...

A: Compute the predetermined variable overhead rate: 

question_answer

Q: The following information was drawn from the Year 5 balance sheets of two companies:  Company Ass...

A: Return on equity ratio:  Rate of return on equity ratio is used to determine the relationship betwee...

question_answer

Q: Cullumber Company markets CDs of numerous performing artists. At the beginning of March, Cullumber C...

A: Periodic Inventory System: Periodic Inventory System refers to the accounting system under which the...

question_answer

Q: Estimating Costs in an Uncertain Environment  Many companies face increasingly unpredictable costs a...

A: When the business is facing uncertain business enviornment, the factors be it revenue or expenditure...

question_answer

Q: The current sections of Teal Mountain Inc.’s balance sheets at December 31, 2016 and 2017, are prese...

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cas...

question_answer

Q: Vale, Hamilton and Curtis, Inc. (VHC) (this is the same company in I above) began operations on June...

A: Computation of Taxable Income of VHC Inc,. for 2018

question_answer

Q: Q: Which situation is better for the debt financing of a subsidiary? A. 16% income tax, 10% withhold...

A: AssumptionsLet us understand the best situation for the parent company in Debt financing to its subs...

question_answer

Q: If the offer is accepted with unused capacity, fixed costs will not increase. The amount of the sale...

A: The question can be solved as follows :