1. If I understand right, according to this model if the company doesn’t own any of its own equity and doesn’t plan on issuing new equity, then the value is lost?
2. It sounds like I can paraphrase the argument as saying that it is better for companies to have resources than individuals, because they will use them to produce more resources whereas individuals will not. Is that right?
1. If I understand right, according to this model if the company doesn’t own any of its own equity and doesn’t plan on issuing new equity, then the value is lost?
2. It sounds like I can paraphrase the argument as saying that it is better for companies to have resources than individuals, because they will use them to produce more resources whereas individuals will not. Is that right?