Optimal capital structures

Assignment Help Financial Management

Reference no: EM131084188

In your own words, briefly explain why one would expect to find optimal capital structures for firms. Briefly explain the factors that the optimal capital structures would depend on.

Reference no: EM131084188

Questions Cloud

What is the amount of the company accounts receivable : Essence of Skunk Fragrances, Ltd., sells 6,500 units of its perfume collection each year at a price per unit of $395. All sales are on credit with terms of 1/30, net 30. The discount is taken by 50 percent of the customers. What is the amount of the ..

What is the average accounts receivable figure : Skye Flyer, Inc., has weekly credit sales of $18,800, and the average collection period is 51 days. What is the average accounts receivable figure?

What interest rate would this be a fair deal : The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $22,000 per year forever. Suppose a sales associate told you the policy costs $467,000. At what interest rate would this be a fair deal?

Companies repurchase shares instead of paying dividends : Since it can be shown that share repurchases have exactly the same wealth effect for shareholders in the absence of taxes and are more beneficial when we account for taxes, why don’t all companies simply repurchase shares instead of paying dividends?

Optimal capital structures : In your own words, briefly explain why one would expect to find optimal capital structures for firms. Briefly explain the factors that the optimal capital structures would depend on.

About the current carrying costs : Louise Manufacturing uses 2,200 switch assemblies per week and then reorders another 2,200. The relevant carrying cost per switch assembly is $8.50, and the fixed order cost is $1,100. What are the current carrying costs?

What is the intrinsic value of the stock : Rocking technologies (RT) have just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the market. What are the expected dividends for years 1 to 5? What is the intrinsic value of the stock (P0)?

Fixed-payment annuity : Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 20-year annuity is $1 million and the annuity earns a guaranteed annual return of 10 percent. The payments are to begin at the end of five yea..

Your ability to buy that basket of goods : Suppose you deposit $4,500 into a savings account with no risk. After 60 years of yearly compounding interest of 2% with a 3% inflation rate, how has your purchasing power (i.e. your ability to buy that basket of goods) change?

User Account

All Pages