Why is capital structure analysis useful for a company

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Reference no: EM132959197

Question -

Q1. Capital Structure

a) Why is capital structure analysis useful for a company?

b) What does the capital structure theory say about a company's capital structure?

Q2. Analysis of company's long-term debts (bonds), share valuation, and dividend policies

a) Explain the relationships between bond prices and interest rates and explain why it is important for company investors to understand the relationship.

Q3. Analysis of company's cost of capital

a) Discuss the cost of capital key definitions and concepts, identify selected company financial policies and cost of capital. 

b) Discuss the importance of the cost of capital under the following criteria: Issues in implementing the Dividend Growth Model and the relationship between the company's weighted average cost of capital (WACC) and investors' required rate return.

Reference no: EM132959197

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