Q 1. How can a firm fund its operations, according to the introduction to Equity and Debt?
Q 2. What is Equity Capital, and who are contributors to equity capital?
Q 3. What is the distinguishing feature of Equity Capital regarding the period for which it is contributed?
Q 4. How is the Cost of Capital different for equity and debt in a business?
Q 5. What rights do Equity Investors have in a company?
Q 6. What does Limited Liability mean in the context of Equity Capital?
Q 7. How is Liquidity provided to investors in Equity Shares?
Q 8. What is the nature of Equity Capital in terms of redemption by the company?
Q 9. What is the distinguishing feature of returns from Equity Capital?
Q 10. What happens if the share price goes down in terms of returns on Equity Capital?
Q 11. What is the primary characteristic of equity capital with regard to the liability of equity shareholders?
Q 12. In a company with an issued and paid-up capital of Rs.10 crore made up of 1 crore shares of Rs.10 each, if an investor owns 10 lakh equity shares, what percentage of the company does the investor own?
Q 13. How do equity shareholders participate in the management of a company?
Q 14. What is the purpose of an Initial Public Offer (IPO) in the context of equity shares?
Q 15. How long does equity capital typically last in a company?
Q 16. What is the key advantage of the secondary market for equity shares?
Q 17. How do equity shareholders benefit from the residual profits of the company?
Q 18. What is the primary risk associated with returns from equity capital?
Q 19. In what situation may a company buy back its own shares?
Q 20. What determines the ownership rights of equity shareholders in a company?
Q 21. What does debt capital refer to in the context of a company's finances?
Q 22. What is the primary obligation of a company when it comes to debt capital?
Q 23. How is debt typically raised by companies?
Q 24. What factor influences the interest rate or coupon rate of a bond or debenture?
Q 25. What defines a secured loan in the context of debt securities?
