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प्रश्न
Explain the following as factors affecting the choice of capital structure:
Stock-Market conditions
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उत्तर
Stock-market conditions: It is easy to opt for equity during boom condition and difficult to opt for equity during the recession condition.
संबंधित प्रश्न
Explain briefly any four factors which affect the choice of capital structure of a company.
What is meant by Capital Structure?
Explain the following as factors affecting the choice of capital structure:
Cost of equity
Explain the following as factor affecting the choice of capital structure:
Floatation costs
Explain the following as factors affecting the choice of capital structure:
Return on Investment
Explain the following as factors affecting the choice of capital structure:
Flexibility
Explain the following as factors affecting the choice of capital structure:
Risk Consideration
Explain the following as factors affecting the choice of capital structure:
Control
Write the external factors influencing capital structure.
State, with reasons, whether the following statements are True or False (Any THREE) :
It is not possible to go ahead without financial plan.
What is meant by capital structure?
Explain the term ‘Trading on Equity’? Why, when and how it can be used by company.
Owned Capital Borrowed Capital
Answer the following question.
'Determining the overall cost of capital and the financial risk of the enterprise depends upon various factors.' Explain any six such factors.
Which component of capital structure determines the overall financial risk?
State any three factors determining the choice of an appropriate capital structure of a company.
The Board of directors of Medex Pharma Ltd. decided to issue debentures worth ₹ 40 lakhs in order to finance a major Research and Development project. This would increase the Debt Equity ratio from 1:1 to 2:1.However, at the same time it would increase the Earnings per share.
The reason that will justify the above situation is ______.
