ChatterBank1 min ago
Capitalization & Budget
4 Answers
Our Manger found in Financial report that our capitalization is higher than our budget.
He told us to find soluation for this.
So I need to know how can we deal with this kind of situation.
Thanks.
He told us to find soluation for this.
So I need to know how can we deal with this kind of situation.
Thanks.
Answers
Best Answer
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For more on marking an answer as the "Best Answer", please visit our FAQ.You need to clarify exactly what is meant here but to use the most common meanings of the terms the financial report says that the total market value of the companies shares (capitalization) is greater than the budget - the amount of money the company expects to make minus the companies expenses.
Simply put the company is overvalued and you need to find ways of increasing profit.
Simply put the company is overvalued and you need to find ways of increasing profit.