Cost of Capital By Heena Malhotra
Capital Structure Decision By Heena Malhotra
Capital Structure O Capital structure is the combination of capitals from different sources of . O The capital of a company consists of equity share holders' fund, preference share capital and long term external debts & retained earnings need of the company and the cost of the capital of the company and it is prime objective while dciing the O The source and quantum of capital is decided on the basis of O However, the objective of a company is to maximise the value By Heena Malhotra optimal capital structure.
Capital Structure: o While choosing a suitable financing pattern, certain factors like cost, risk, control, flexibility and other considerations like nature of industry, competition in the industry etc. should be considered By Heena Malhotra
Capital Structure Decision Capital Structue Thecris an Designing an Optimal Capital Structure Capital Structure Theories .Net Income (NI) Approach .Traditional Approach .Net Operating Income (NOI) Approach .Modigliani- Miller (MM) .Approach Trade-off Theory Pecking Order Theory EBIT- EPS Analysis By Heena Malhotra
A firm has the choice to raise funds for financing its investment proposals from different sources in different proportions. It can: a) Exclusively use debt (in case of existing company),or (b) Exclusively use equity capital, or (c) Exclusively use preference share capital (in case of existing company), or (d) Use a combination of debt and equity in different proportions, or (e) Use a combination of debt, equity and preference capital in different proportions, or Use a combination of debt and preference capital in different proportion (in case of existing company) (1) ese sources is called capital structure mix. But the question is which of the pattern should the firm choose? By Heena Malhotra