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प्रश्न
Explain the following as factors affecting the choice of capital structure:
Control
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उत्तर
Control: Equity shareholders are regarded as owners of the company as they have complete control over the company. Owners and existing shareholders have complete control over the company as they employ more of debt securities.
If management wants to keep control in its own hands ⇒ More debt
If management can share control with others ⇒ More equity
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