Power Point Thesis Presentation...

8/4/2019 Power Point Thesis Presentation...

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A Thesis PresentedBy

M.Haseeb Zafar

UOL Reg. No.MAF 05093061

PresentedTo

The Committee on Academic DegreesIn Partial Fulfillment of the Requirements

For a Degree of MS (Finance)



ANALYSIS OF

DIFFERENT METHODS

FOR RAISE EQUITY



EQUITY

Equity is the claim or residual claim or inter in according andfinance.

POSITIVE EQUITY

when liabilities not exceeds assets than positive equityexists.

NEGATIVE EQUITY

When liabilities exceed assets, negative equity exist

EQUITY IN BUSINESS PROSPECTIVE:-

When the business is start then owners put some funding orinvest capital into it for finance operations. As the businessand owners both are considered separate legal of entityaccording to business entity concept; so this creates theliability on the business in shape of capital.



EQUITY RISINGS

There are lot of issues that companies need to beconsidered when this about raising the equity capital.Raising the equity capital; The first question that can arise

is what do I need the capital for it might be to enable you tothe growth of your business etc…..

OVER VIEW OF EQUITY CAPITAL RAISING

Companies consider a large number of possible optionswhen they are going to raise the capital there are so many

different methods tools of capital through which the capitalor equity can be raised . The choice of thecompany's capital raising needs will depend on severalreasons.



Our research and conference predicted the extent of earningsmanagement in the economic development of the initial public offering, thegovernment led to the profit forecast in the rule of law Public OfferingManager choose for a earnings issuance will sign their aptitude toconsequence within a intention area while manager I choose for a shallsuspension will match the act to maintain their report, with the effect that

both groups are the same in the significance of the learningmanagement(Norashikin , Ismaile, Pauline Weetman 2008)

We created a simple theory of the cost of bargaining, the founder ofthe empirical analysis of trade-off incentive to accept anequal split simple. It consists of three main steps. First, we consider theequal split of the deciding factor. Idea generation, initial capital of the

Constitution, it is more about team heterogeneity reduce the possibilityof an equal division. Second, these same characteristics of the foundereffect is also significant share of the preview. The third showsthat equal division is associated with lower pre-money valuationof connection. It is estimated that about 10% of the equity value ofthe stock.

(Hellmann F. Thomas and Wasserman Noam 2011)



Private placement of equity is one of the easiest apparatus used bythe company for raise funds or equity capital. Through the previousstudies of equity issuance tells that the firms that select communityequity offerings with come across the negative results. The studiesperformed by Mikkelson and Ruback (1985), Schleifer and Vishny(1986) Agrawal and Mandelker (1990) and Brous and Wini (1994)shows that the firm who got acquire money from public offeringsgot negative results. The main purpose of this study is to set up thefactor which influence firm to issue equity privately. The aim of thisresearch is to test the relationship of earning performance stockprice run up, cost of agency and firm size theory with the choice toraise private placement equity. According to packing order theydeveloped by standard C Myers and Nicolas Majluf in 1984,companies got most of resources of financing from internal

financing to equity which based on the law of least attempt. Itmeans that companies raise equity as means of last resort. Sointernal funds are the first choice and when they be unsuccessfulto get from internal resource than debt is issued. This whole theorytells that the companies got or prefer to got or raise equity capitalfrom internal resources. (Research Journal of Finance 2010)



Small business loans

Small business loans are very popular and Government ofdifferent countries gave these soft loans in order to best upsmall business. There loan are available in favorable terms andconditions. There are two ways to attract the investors stokesome companies pay large dividend But other charges into the

company's low stock pries rises often split up theshares, which will, not to raise the company's capitalor equity, but it is very easy for the stock holders of the sharessold on the open market. Floating down one of two awards inthe stock to attract investors reduced by half.Companies can also obtain loans from banks, raising short-term funds or funds of other lenders. The company also

retained earnings financing. Very straight concerning retainedincome. Some companies, especially electric, gas andother utility bills to pay their stock holders dividend of most ofthe projects.



Internal Finance

Options include increase retain earnings sellingnot necessary assets and divesting part of the

business companies, purchasing assets orbusiness may be able to finance all or part of acquisitions by issuing equity to seller directly of the assets or business. These vender completionsissue do not involve market based issuance.

External finance

Director’s funds and existing share holders.



Debt financeBank Loans and issuing bonds are involved.

Equity capital

Options include the first and subsequentissues of shares, and shares the companyhas held advocacy correct the problem,open offer and placing of the different forms ofgeneral public sent IPOS. These options is to

choose a different enterprises and companies toraise capital may depend on the reason, theamount of increase, the company's financialposition.



Family and friend

From friends and family than other friends and family self-financing of capital provides an additional means to improvethe new business capital, can increase the equity capital.

These loans can be made quickly, because friends, family

and colleagues know the entrepreneur personally enjoy theexcitement of the new venture. Loans from friends andfamily money, new businesses can be agents of the owner.

Business angels

If you want to raise business, angle investments could be a

way opportunity angel investors who are already richindividuals desire. They plan an important role in the earlystages of funding capital.



FINANCING

This is a type of fund, the ownership of this money isessentially anew business in the price of the exchange. This typeof financing risk capital and angle investors.There is an optimal use of capital equity financing as a major

advantage of the new business owners can return at a fixed timefor friends to hear.

PERSONAL FUNDING:-

Individual sources of funds raising interests. Purchased using

personal funds, you can easily improve the company's capital.Many people can be from personal checking and savingsaccounts and retirement account equity credit card real estateproperty for sale, entertainment, and even some rare collectiblesfrom the collection of business risks, you can choose to use themto make personal, to enhance their new business capital funds.



Pre-emptive

A privilege extended to selectshareholders of a corporation that will givethem the right to purchase additional shares

in the company before the general public hasthe opportunity in the event there is aseasoned offering. A preemptive right iswritten in the contract between thepurchaser and the company, but does not

function like a put option. Also known as"preemption rights". Non pre-emptive

Vise versa of pre-emptive rights



Debt financing:-

New business owners also raised equity throughdebt financing. This means debt financing ofcapital is a form of new business frombanks, government agencies provide loans.New means of financing business owners thedesert to raise funds, he / she will owe whichbank lending institutions

Secured and unsecured loans:-

These loans to these entrepreneurs, who needit, it's necessary to improve the newbusiness capital. These loans as secured orunsecured debt, which is specially designedto meet the new requirements of business owner

money.



Government funding:-

Government also plays a vital role in raisingcapital. Government game the loans to newbusiness owners to start up the business and by

giving loans the new business owners start theirbusiness a easily and their equity would alsoraised which is needed to the owner and fixedvariable expenses:-There are two type of expenses fixed expenses and variable expenses.

The new business owner must differentiatebetween two types of expenses. These two arestart up expenses. The latter two types canpredict the total cost of assessment .



UNDER WRITING EQUITY CAPITAL RAISING:-

Advice

Administration, companies anddistribution:-

Guaranteeing the proceeds of the shareissue

Under writer /book runners:-

Lawyers. Corporate brokers

Legal Advisors

Independent advisors:-



The procedure of equity raising:-

OPEN OFFERS

PLACINGS

How equity under writing services are

purchased.



In a vividly speaking, it is concluded that equity plays an vital andprecarious role in the development of the country and the businessas well. Equity can be contemplating as the spine of the company,as the finance is lifeblood for the business, so the finance is raiseby the equity. The owner raise equity from different resources. You

can get finance from family, friends, capital ventures, investorangels, banks creditors, and other friends. If you want to get biggeryour business you need money and this wanted money can beraised from the investors those who are decided to invest theirmoney in your firm. Everyone wants to increase the finance of hiscompany. The raising of capital equity sometimes expensive for

the firm……….

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