Is there an optimal capital structure, Financial Management

Assignment Help:

Is there an optimal capital structure? What is it and how can it be calculated?

There is no optimal capital structure. Capital structure is a variable which depends on the inclination of high directives and which has a many of implications for the company: for its daily functioning, for its growth, for its capacity to manage risks and crisis and for its survival. If we consider the optimal structure the one that maintains a minimum WACC, then the optimal structure is the one that maximizes debt

Related Discussions:- Is there an optimal capital structure

Call provisions, The issuer's right to call back the issue before the...

The issuer's right to call back the issue before the maturity date is referred to as a "call provision". In case of asset-backed securities, the trustee is grante

Brief introduction of asset backed security, An asset-backed security is a ...

An asset-backed security is a type of bond or note that is based on a pool of assets, or collateralized by the cash flows from a specified pool of underlying assets. As

Indexed bonds, In indexed bonds, the principal and coupon payme...

In indexed bonds, the principal and coupon payments are linked to the market index like inflation and price index. Index bonds are attractive to investors

Difference in effective annual rate or annual rate, Emily Jill Rogers is p...

Emily Jill Rogers is planning to buy a house but needs assistance as to how she will finance the purchase. She has supplied you with some information and asked you to help her wit

What are the limitations of trade payable day''s ratio, What are the Limita...

What are the Limitations oftrade payable day's ratio? Year-end trade payables may not be representative of the year. Credit purchases are VAT exclusive in the income sta

Walter''s model, 3. The following information are related to Sun Ltd. Paid...

3. The following information are related to Sun Ltd. Paid-up equity capital ` 10,00,000 Earnings of the company ` 1,00,000 Dividend paid ` 80,000 Price - Earning rat

Cash forecasting and budget, Cash Forecasting and Budget: It is used t...

Cash Forecasting and Budget: It is used to get an idea of what a cash forecasted budget any might expect to earn in a fiscal year. You take last year's expenses, increased by

Lockbox system, how do we compute for benefits can derrive out of using loc...

how do we compute for benefits can derrive out of using lockbox system?

Alternative dividend policies, The managing directors of three profitable l...

The managing directors of three profitable listed companies discussed their companies' dividend policies at a business lunch. Company A ; has deliberately paid no dividends for

Valuation and duration of callable bonds , A callable bond is simil...

A callable bond is similar to an Option-free bond with a call option from the bondholder. It can be thought of as the sale of a call option by the investor

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages