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She listed a series of risks, including a further dilution of capital and liquidity requirements, a failure to police shadow banks and derivatives, and compensation.
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Merrill Lynch cut its view of A.I.G.'s earnings for 2008 and 2009, citing dilution from the raising of capital.
ISS has also provided that, while it will generally follow its EPSC model in evaluating equity plan proposals, ISS may recommend against the proposal despite a passing score if it is deemed "excessively dilutive". ISS considers a proposal excessively dilutive if the proposal is estimated to cause share capital dilution of more than 20% (for S&P 500 model) or 25% (for Russell 3000 model).
More posts by this contributor Redefining dilution When venture capital becomes vanity capital Joseph Flaherty Contributor Joe Flaherty is director of Content & Community at Founder Collective.
What dilution are they willing to accept today, to get that amount of capital?
A high equity ratio can signal an unfeasibly high cost of capital (because equity costs more than debt) and dilution of ownership.
For kava drinkers in the capital, the increasing dilution of the drink is a worrying trend.
So, when you go to raise money, you'll have dilution of equity when you're raising capital.
All the streams are not suitable for anaerobic digestion, due to high flow rate or high dilution of COD, which means a high capital cost compared with the methane production capacity.
In many cases debt financing can protect from dilution, optimize capital structures, and is a cheaper source of financing than equity.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com