Capital structure definition, Financial Management

Assignment Help:

CAPITAL STRUCTURE DEFINITION

According to Gerstenberg, Capital structure refers to 'the makeup of a firm's capitalisation'.  In other way, it signifies the mix of different sources of long term funds (like preference shares, equity shares, long term loans, and retained earnings).

Optional Capital Structure may be described as that of Capital structure or Combination of debt and equity that leads to the greatest value of the firm.

Capital structure planning intends at maximization of profits and the wealth of the shareholders, ensures the maximum value of a firm or minimum Cost of capital.


Related Discussions:- Capital structure definition

Preferred stock, Preferred Stock This is a category of capital stock th...

Preferred Stock This is a category of capital stock that will gives its holders preference  over common stockholders in the distribution  of earnings  or rights to the assets o

What is gross dividend, Gross dividend At the ending of the financial ...

Gross dividend At the ending of the financial year companies will announce the profits or losses that they have earned and a figure for net profit after tax. A company is able

Regarding the assigment below, a-ii, should i calculate the co-variance of ...

a-ii, should i calculate the co-variance of the 30 securities?

Cost of capital, the nu-nu brothers inc. (NNBI) has the following capital s...

the nu-nu brothers inc. (NNBI) has the following capital structure,

Global bonds, These are bonds which are offered within the euro marke...

These are bonds which are offered within the euro market and several other markets simultaneously. Unlike Eurobonds, global bonds can be issued in the same curren

Explain briefly the term e-billing, QUESTION (a) Describe briefly three...

QUESTION (a) Describe briefly three methods of electronic payment. (b) (i) Explain briefly the term E-Billing. (ii) Outline three advantages of E-Billing. (c) Why is c

How cash flow problems arise, Q. How cash flow problems arise? It is si...

Q. How cash flow problems arise? It is significant first to distinguish between profitability and cash availability. The key scheme relates to insolvency since even profitable

Manage an assignment, Manage a project or clearly defined piece of work fro...

Manage a project or clearly defined piece of work from beginning to end. This may include setting up a budgetary system.

Business, Ken started college at the age of 18 with $63,450 already saved, ...

Ken started college at the age of 18 with $63,450 already saved, because 18 years ago his saving account 7.25 per year.

Uses of index numbers, Uses of Index Numbers 1. Establishes trends ...

Uses of Index Numbers 1. Establishes trends Index numbers when analyzed reveal a general trend of the phenomenon under study. The available figures for inflation based

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