Define optimal capital structure

Assignment Help Business Management

Reference no: EM131276240

1. Define optimal capital structure. What is the relationship between optimal capital structure, corporate value, and cost of capital? How does the concept of effective capital structure differ from optimal capital structure?

2. Some companies carry essentially no long-term debt and only a minimal amount of short-term debt in their capital structure. Often these firms are in the technology and biotechnology sectors. Provide an explanation for why well-managed and profitable companies in these sectors appear to undervalue the benefits associated with an optimal capital structure.

Reference no: EM131276240

Questions Cloud

What is the relationship between teaching and management : What is the relationship between teaching and management? Teaching is when a teacher directs and guides students as they embark on the journey of learning.

Describe at least three ways a person can teach by example : Describe at least three ways a person can teach by example according to the article and provide a personal example in which you have demonstrated this concept.

Show that the wavefunction is normalized. : Phys 301:Show that the wavefunction is normalized.Calculate the average energy of this system.

Identify managerial issues related to health care industry : Identify managerial issues related to the health care industry - Identify a plan that addresses legal and ethical issues in a health care policy.

Define optimal capital structure : Define optimal capital structure. What is the relationship between optimal capital structure, corporate value, and cost of capital? How does the concept of effective capital structure differ from optimal capital structure?

Compare and contrast the two versions of the film : Discuss the plot points. What is the dramatic premise? What is our main character's dramatic need? Compare and contrast the two versions of the film. Discuss which version you consider to be more "artistic" and why.

What factors do these rating agencies evaluate : What factors do these rating agencies evaluate when determining a company's financial risk classification? In what range of financial risk classification do we find most companies?

Describe the process a manager should employ : Explain why companies with the same credit rating can have very different coverage ratios.- Describe the process a manager should employ to establish an effective capital structure and payout policies.

Calculate the average heat transfer coefficient : A horizontal 2 cm OD tube is maintained at a temperature of 27°C on its outer surface. Calculate the average heat transfer coefficient if saturated steam at 6.22 kPa is condensing on this tube.

User Account

All Pages