Investment opportunity and capital structure, Finance Basics

Assignment Help:

Investment Opportunity and Capital Structure

Investment Opportunity

Lack of suitable investment opportunities, that is so, by positive returns or N.P.V., may encourage a firm to raise its dividend distribution.  If a firm has much type of investment opportunities, it will pay low dividends and have high retention.

Capital Structure

A company's management may want to achieve or restore an optimal capital structure that is if they consider gearing to be higher, they may pay low dividends and permit reserves to accumulate till a more optimal or suitable capital structure is restored or achieved.


Related Discussions:- Investment opportunity and capital structure

Assumptions underlying percentage of sales method, Assumptions Underlying P...

Assumptions Underlying Percentage of Sales Method The fundamental supposition underlying the use of % of sales method is such, there is no inflation in the economy such is the

Short term fianacing, discuss the three approaches to the short -term finan...

discuss the three approaches to the short -term financing problem and provide relevant examples of each.

FIR 3410, Your client, a man, is currently 35 years old and he wants to re...

Your client, a man, is currently 35 years old and he wants to retire when he is 65 years old (exactly 30 years from now). He would like his retirement income to be equivalent to

Five common mistakes in capital budgeting, Please list five common mistakes...

Please list five common mistakes in capital budgeting that could either overstate or understate the value of a project.Bonus: explain the relationship between the errors above and

OPTION, DEFINE THE TERM OPTION IN DETAIL?

DEFINE THE TERM OPTION IN DETAIL?

Foreign trade balance, Foreign Trade Balance If the Government buys or...

Foreign Trade Balance If the Government buys or imports much more than it sells or exports there will be a trade deficit such will require financing.The most important source

Rajendra kumar, whom do you think rajendra should eat with and why

whom do you think rajendra should eat with and why

Assignment, Following details are related to three companies which are iden...

Following details are related to three companies which are identical except in terms of ''''r''''. Company ABC Ltd. MNC Ltd. XYZ Ltd. Cost of capital 10% 10% 10% Earn per Share Rs

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd