--%>
Assignment Help - homework help

Introduction of the term capital structure

Give brief introduction of the term capital structure? And also write down its principles?

E

Expert

Verified

Capital structure is a word that is referred to be the mix of sources from that the long term funds are needed for business purposes that are raised to get better the capital of the company. To fund an organization strategy this capital structure is needed that is the amalgamation of debt and equity. The management makes sure the capital structure accesses that are needed to fund future enlargement and improve financial presentation. The principles of capital structure management that are effectively needed are illustrated below:-

i) Risk Principle

ii) Cost Principle

iii) Flexibility Principle

iv) Control Principle

v) Timing Principle

   Related Questions in Business Economics

  • Q : Production possibility frontier

    Question: Scenario: You have been hired as the economics adviser for the newly elected State Premier. On your first day, the Premier introduces you to the new Minister for Health

    		•
  • Q : Goods and services are scarce because

    Explain:  “Goods and services are scarce because resources are scarce.”  Analyze:  “It is the nature of all economic problems that absolute solutions are denied us.”

    		•
  • Q : Perfectly competitive market and its

    Which of the given is not a characteristic of a perfectly competitive market structure: w) there are a very huge number of firms which are small compared to the market. x) All firms sell the same products. y) There are no restrictions to entry through

    		•
  • Q : Absolute advantage in international

    One early involvement of Adam Smith to the theory of gains by international trade, although later thoroughly revised and refined through David Ricardo, was the conception of: (1) mercantilism. (2) absolute advantage. (3) comparative a

    		•
  • Q : What 2 points are required to emphasis

    What 2 points are required to emphasis foreign exchange market?

    		•
  • Q : Surpluses in the balance of trade The

    The advocates of laissez-faire policies favor: (i) Govt. control of economy. (ii) Public ownership of all the resources. (iii) Income to be distributed according to requirement. (iv) Surpluses in the balance of trade. (v) Minimal govt. intervention in economy.

  • Q : Introduction of the term Cost of

    Give a brief introduction of the term Cost of retained earnings?

    		•
  • Q : Adopting policy of paying efficiency

    The expected losses to workers by shirking are increased while a firm adopts a policy of: (1) dividing productive tasks therefore the division of labor is optimal. (2) paying efficiency wages that exceed market-clearing wages. (3) avoiding legal liability from not wri

    		•
  • Q : What do you mean by Financial Linkages

    What do you mean by Financial Linkages in U.S. and World Trade?

    		•
  • Q : Writ short note on the income of

    Writ short note on the income of functional distribution?

    		•