Capital Structure Design Archives

Planning and Design of Capital Structure notes and numerical with solution Financial management study material - EBIT - EPS analysis, Financial Distress, Debt service coverage ratio, Interest coverage Ratio. Getting an Exact optimal capital structure is near to impossible and efforts should be made to achieve the best approximation to the optimal capital structure. A capital structure for a firm should be planned - (a) To keep the financial risk of the firm to a minimum level, (b) To reflect the philosophy of the management regarding control over the firm, (c) To provide flexibility in the ability of the firm to raise additional capital funds whenever needed, and (d) To maximize the EPS of the equity shareholders.

Capital Structure Design

Capital Structure Planning and Designing Getting an Exact optimal capital structure is near to impossible and efforts should be made to achieve the best approximation to the optimal capital structure. A capital structure for a firm should be planned – (a) To keep the financial risk of the firm to Read more…

By admin, 6 monthsJune 4, 2022 ago