Financial magmt
This query is : Resolved
15 January 2012
hi what is the risk involved in equity and debentures? which out of these two is better??
is EBIT gross profit or netprofit and why??
is EBIT gross profit or netprofit and why??
CA PARAS BAFNA
(Expert)
15 January 2012
Investment in Equity is riskier than in Debentures. Returns are uncertain and depends upon the profitability of the company. The only relief to the share holder in case of an equity can be said, is the limited liability... i.e. to the extent of amount unpaid on shares.
.
Debentures assures regular and fixed return. Ups and downs in share market have no effect on it. It is less riskier than the shares.
.
It depends upon the person who is exercising the option. If he is young, risk taking man, ambitious and desires high return, he should go for equity of good and prospective companies.
.
EBIT -mean Earnig before Interest and Tax.
It is not gross profit. It is nearer to the net profit. If You deduct Interest and Tax from Net Profit you will get EBIT.
.
.
Debentures assures regular and fixed return. Ups and downs in share market have no effect on it. It is less riskier than the shares.
.
It depends upon the person who is exercising the option. If he is young, risk taking man, ambitious and desires high return, he should go for equity of good and prospective companies.
.
EBIT -mean Earnig before Interest and Tax.
It is not gross profit. It is nearer to the net profit. If You deduct Interest and Tax from Net Profit you will get EBIT.
.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Visiting card purchase
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- Equity Share Sale and Purchase
- Whether output tax is taken credit by purchaser
- Additional trade name
- Number of years as per AS amortisation of Goodwill
- Wrong CMPo8 file
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
