0
Max of Economic Capital vs. Regulatory Capital
+
Buffer (usually defined by board)
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Is a firms cost of capital influenced by net income capital structure or par value of common stock?
Capital structure
Is there a universal optimal capital structure that would benefit all firms?
best universal capital structure for all companies?
The process of planning and managing a firms long-term investments is called?
Capital Structure Managemnet
What is a firm's capital structure?
Capital structure is basically how the firm chooses to finance its asset, or is the composition of its liabilities. A large way of measuring capital structure is a firms debt to equity ratio - the higher this ratio is, the more leveraged (the more indebted) the firm is.
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.
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.
How do you compare the organizational strucure and culture of two firms?
You can compare the organizational structure and culture of two firms by examining the various management styles and promotional structure of the two different firms.
What is a place for trading?
Ways by which firms may raise capital.
Why must firms make decisions about which goods they will produce?
because firms have access to limited resources of land, labor, and capital
Who advises firms when raising capital?
For medium to large size companies, firms typically seek the services of an investment bank.
The market structure that is characterized by a small number of large firms that have some market power is called?
The market structure that is characterized by a small number of large firms that have some market power is called
How does the capital consumption allowance affect the firms cash flows?
answer the question
