answersLogoWhite

0

optimal capital structure means using the resources of capital optimally, at is where they can utilised properly.

target capital structure means investment made in the certain project so that they can utilise the resource of capital properly.

User Avatar

Wiki User

13y ago

What else can I help you with?

Related Questions

What is the difference between capital structure and capital structure?

capital structure is the structure/form/shape/component of total amount of capital owned by a company .... means the total issued or subscribed capital whether its in the form of ordinary shares, PTCs ,TFCs, etc optimal capital structure is the such amount of capital which a company maintains while seeings its cost.


What is the differences between capital structure and optimal capital structure?

capital structure is the structure/form/shape/component of total amount of capital owned by a company .... means the total issued or subscribed capital whether its in the form of ordinary shares, PTCs ,TFCs, etc optimal capital structure is the such amount of capital which a company maintains while seeings its cost.


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.


How do you calculate optimal capital structure?

very carefully


Is there a universal optimal capital structure that would benefit all firms?

best universal capital structure for all companies?


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 optimal capital structure?

ots is such amount capital which is a company maintaims while seeinds it s cost.


The firm's optimal mix of debt and equity is called its?

target capital structure


What is the difference between feasible and optimal solution?

The optimal solution is the best feasible solution


What is the difference between form and function in a structure?

In design and architecture, "form" refers to the visual appearance or shape of a structure, while "function" relates to its purpose or intended use. Form and function are interconnected aspects, with successful designs balancing both for optimal results.


What has the author R S Thompson written?

R. S. Thompson has written: 'Corporate asset market extensions and the optimal capital structure'


Basic tools of capital-structure management include?

Basic tools of capital-structure management include debt financing, equity financing, and hybrid financing. Companies must consider factors such as cost of capital, risk tolerance, and financial flexibility when determining the optimal mix of debt and equity in their capital structure. Additionally, financial ratios like debt-to-equity ratio, interest coverage ratio, and return on equity are used to evaluate and manage the capital structure.