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Usually Business raise capital by public offerings. Another advantageous alternative to capital rising is going to debt market and raising the capital for the business.

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Q: Which alternative capital structure is more advantageous?
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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 are the advantages and disadvantages of capital structure decision?

The disadvantage of the capital structure decision is that it is very complex and expensive. The advantage is that it leads to more company profits.


If a company has a capital structure that is financed with 30 percent debt what happens to the market value capital structure of that firm if it neither issues debt nor equity for several years?

the market value will remain the same or change, depending on movement of share price and the systematic risk of equity.the market may dissolve if it continious to incure more debts.


Which degrees are more advantageous in getting a job in banking industry?

There are many jobs within the banking industry. Though not all of them require a degree you may find it advantageous to have a sound background and experience in a field such as accounting or business.


What is capital reduction?

The process of decreasing a company's shareholder equity through share cancellations and share repurchases. The reduction of capital is done by companies for numerous reasons including increasing shareholder value and producing a more efficient capital structure. After a capital reduction, the number of shares in the company will decrease by the reduction amount. In some capital reductions, shareholders will receive a cash payment for shares cancelled - but, in other situations, there is minimal impact on shareholders. Source: Investopedia

Related questions

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 are the advantages and disadvantages of capital structure decision?

The disadvantage of the capital structure decision is that it is very complex and expensive. The advantage is that it leads to more company profits.


Describe factors for designing an ideal capital structure of a company?

good Various embodiments of the present invention relate to methods and systems for analyzing a capital structure for a company (e.g., a public corporation). More particularly, one embodiment of the present invention relates to a decision making tool for analyzing a company's capital structure, which decision making tool may include: (1) Economic EPS, wherein Economic EPS and its volatility may capture the cost/risk trade-off of all fixed income and equity-related alternative capital structures; and (2) Capital Structure Efficient Frontier, wherein a company should strive to bring its capital structure to the efficient frontier of strategies with the highest EPS for given levels of EPS risk. Of note, the Economic EPS and the Capital Structure Efficient Frontier methodologies of the present invention provide a unifying framework in which to analyze a company's capital structure (e.g., for identifying and implementing the economically optimal solutions to a company's capital structure challenges). Apart from the global view of the company's capital structure, this framework can be used as a decision-making tool for analyzing and comparing specific restructuring transactions (including, but not limited to): new financing, share repurchase, liability management, bank capital optimization, and/or tax-driven hybrid equity issuance.


What is the difference between data and data structure?

Data structure: An information structure is an arrangement of information considered as one substance. An int, for instance, is a straightforward variable, can't be considered as an information structure, yet an exhibit is an information structure. Data: Information will be data that has been interpreted into a frame that is more advantageous to move or procedure.


What is a sentence using the word advantageous?

The contract was settled on terms that were advantageous to our company. The sawmill was relocated to a more advantageous location near the river.


What are the single and dual alternative selection struction?

Single Alternative Selection Structure is a binary (IF>THEN) statement. IF condition X is met THEN do this. Dual Alternative Selection Structure is when more than one option exists and the statement has the possibility to take the program in different directions, based on the response. IF condition X is met THEN do this, ELSE do something differently.


What is the matching principle of working capital financing?

An all equity capital structure would be the most conservative type of working capital financing plan approach. The more long-term financing used the more conservative the financing plan, and equity is permanent financing.


What are the advantageous of saving energy?

You'll have more energy.


Is globe more advantageous than map?

Globes will give a more accurate representation.


Why is it advantageous to have more muscle mass?

so you can eat more with gaining weight and burn more calories


Which is more advantageous to plants-more stomata on the upper epidermis or lower epidermis?

upper epidermis for sure>>>


Why is internal fertilization considered more advantageous than external fertilization?

Internal fertilization is considered more advantageous than external fertilization for various reasons. The unborn baby is protected in the internal fertilization from any external threats.