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What should be the relation between the target capital structure for a firm and the firm optimum capital structure?
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How is the optimum mix of capital structure achieved by a finance manager?
goudhmarini
Why different sources of finance is needed for capital expenditure?
Different sources of capital has different percentage of interest amount payable so optimum capital mixture required to finance business.Due to high risk and high interest rate associated with different source of financing so optimum capital structure is required to get maximum benefit.
What is the optimum working capital?
Optimum working capital is that point where working capital is neither short from requirements nor excess working capital available at any time during fiscal year.
What is an appropriate capital structure and What is a flexible capital structure?
Appropriate Capital structure refers to the most optimum way of finding a combination of debt and equity.Features of Appropriate capital structure are:Profitability Aspect: cost of capital is minimum and market price per share is maximum.Liquidity Aspect: The Capital structure should be composed in a way that the firm has enough of assets to cover its liabilities.Solvency Aspect: The composition of Capital structure should be in such a way that the firm doesn't run the rick of going bankrupt or Insolvent.Capacity/Conservation: The debt part of the Capital structure shouldn't exceed the debt limit which the company can't bear incase of untoward events.Control: Capital structure should involve minimum risk of loss of control over the company. The dilution of control should be mitigated.- R.Mele
What is the effects of capital expenditure on optimum design?
sdasd
What is the optimum Temperature for testing water conductivity?
There is no optimum between 00C and 1000C.
What is the difference between interior optimum and boundary optimum?
The interior optimum method uses an a choice that is determined by the position of an agent at a tangency that rests between the curves of two points on a graph. The boundary optimum method analyzes the position of waves.
In relation to spectroscopy what is the Optimum wavelength and how to find it?
The optimum wavelength is the wavelength by which the most light is absorbed by a substance. It can be found by finding the highest absorbance obtained when testing the substance's absorbance at various wavelengths. The wavelength that results in the greatest light absorbance is your optimum wavelength.
What is the capital of electricity in India?
Sources of electricity in India by Installed Capacity as of 2013 ...... utility of the existing transmission infrastructure with optimum future capital investments.
What is the difference between optimum and maximum?
Maximum means overlimit while optimum means right/perfect amount
Why is it important to observe Economic order quantity?
To maintain optimum level of inventory and to reduce working capital
Optimum capital structure in financial management?
Capital structure with a minimum weighted-average cost of capital and thereby maximizes the value of the firm's stock, but it does not maximize earnings per share (Eps). Greater leverage maximizes EPS but also increases risk. Thus, the highest stock price is not reached by maximizing EPS. The optimal capital structure usually involves some debt, but not 100% debt. Ordinarily, some firms cannot identify this optimal point precisely, but they should attempt to find an optimal range for the capital structure. The required rate of return on equity capital (R) can be estimated in various ways, for example, by adding a percentage to the firm's long-term cost of debt.
