answersLogoWhite

0


Best Answer

They sometimes go together. The capital structure will be how much money is coming in. The value of the firm will include this plus how much people think of the firm.

User Avatar

Wiki User

9y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is Relationship between capital structure and value of the firm?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Explain briefly the traditional view of the relationship between the capital structure and the value of the firm?

The traditional view of a firms capital structure is the process of increasing goodwill value of the firm, while limiting the use of capital expenses and controlling capital costs. The first achieves this through materializing its limited finances through financial leverage.


Is a firms cost of capital influenced by net income capital structure or par value of common stock?

Capital structure


What is the relationship between investment in human capital and gross domestic product?

to determine the value of french fries


What is the total-value principle as it applies to capital structure?

No way


What is the optimal capital structure?

optimal capital stucture is that where the firm value is high and the wacc of the firm is low and that capital structure a firm can follow constantly and that capital stucture not become a burdon on firm.


What is the difference between social and human capital?

Human capital is the value of a person's skills, knowledge and experience. Social capital is the value of a person's relationships and networks.


What is meant by p value?

the p-value is used in statistics. It shows how strong the relationship between the variable are. Normally it is between -1 and 1. The closer it is to one the stronger the relationship is. the p-value is used in statistics. It shows how strong the relationship between the variable are. Normally it is between -1 and 1. The closer it is to one the stronger the relationship is.


What is the relationship between interest rate with present value and future value?

direct


The relationship between the value of money and the price level?

There is an inverse relationship between value of money and the price level. So if the value of money is low, then the price level is high or if the value of money is high, then the price level is low.


What is the mix of optimal capital structure?

There is nothing called optimal capital structure. optimal capital structure for a company refers to the composition of debt and equity, where the firm cost of capital is the lowest and value of the firm the highest. Optima capital structure for one company can not be same for the other company as well as the firms differ from each other in their basic characteristics. Even if the firm have same basic characteristics, they differ in Human resource, skill set etc.


What is the difference between value added and non-value added activities?

consumption of fixed capital


What is the relationship between the value of the two 5s in 1550304?

hbcf