--%>
Assignment Help - homework help

Common factors influencing capital structure

Write down the common factors influencing capital structure?

E

Expert

Verified

The common factors which are influencing the capital structure are illustrated below :-

1) Company constitution : In companies capital structure is extremely significant as many companies treat it as a dissimilar entity. Private companies considers control factor as significant whereas public company finds cost factor more significant.

2) Company characteristics : Characteristic of the company that explain its infrastructure as age, size and credit plays pivotal role in deciding the capital structure. Slighter or newly started companies depend more on equity capital as they can do limited bargaining. Large companies or having good credit companies are in the place to get funds from the source of their selection.

3) Stability of Earnings : Fluctuations takes place if the earnings and sales of the company are not secure enough over an era of time. Stable company can get the risk.

4) Attitude of the Management : Attitude performs a significant role as if the attitude is conventional then control factor gets the significance and if it is liberal then cost factor gets significant.

   Related Questions in Business Economics

  • Q : Interrelationships between economic

    Explain in detail the interrelationships between economic facts, theory, and policy.  Critically evaluate this statement:  “The trouble with economic theory is that it is not practical.  It is detached from the real world.”

    		•
  • Q : Micro economics and macro economics

    Micro economics and macro economics:Economic theory can be widely divided into micro and macroeconomics. The word micro means small and macro means big.In microeconomics, we deal

    		•
  • Q : What are the Functions of money Explain

    Explain in short the functions of money? Answer: (A) Medium of exchange: Money can be employed to make payments for all transactions of services and goods.

    		•
  • Q : Describe unequal burdens of

    Describe unequal burdens of unemployment exist?

    		•
  • Q : Explain the foundation of economics

    Explain the foundation of economics where society’s material wants are unlimited?

    		•
  • Q : Briefly state the pros and cons of

    Briefly state the pros and cons of Corporation?

    		•
  • Q : Market system & a command economy try

    Contrast how a market system and a command economy try to cope with economic scarcity?

    		•
  • Q : How might government correct this

    What divergences arise between equilibrium and an efficient output spillover benefits are present?  How might government correct this divergence?

    		•
  • Q : Why is speculation unlike arbitrage

    Speculation is unlike arbitrage since: (1) speculative buyers always break even. (2) speculation causes increased costs. (3) speculators bear no risk. (4) positive returns for speculators are not sure. (5) competitive speculation equa

    		•
  • Q : Utilitarianism of Jeremy Bentham The

    The utilitarianism of Jeremy Bentham is generally closely akin to the philosophies of: (1) Epicurianism and hedonism. (2) pragmatism and instrumentalism. (3) asceticism and stoicism. (4) dialecticism and materialism. (5) fundamentalism and predestinat

    		•