External factors which influencing the capital structure
Write down the external factors which influencing the capital structure?
Expert
The external factors that are influencing the capital structure are illustrated below :-
i) Economic Conditions : If the economy is in state of despair, preference is given to equity form of capital that involves fewer amount of risk however it is avoided in some cases where the investor is not set to take the risk. In this case companies go on with the borrowed capital. ii) Interest Rates level : Form of borrowed capital will be deferred if the funds are accessible in high rates of interest however rising is not favorable. iii) Lending Policy : If policy is difficult to comprehend and not flexible then it is better to go with the borrowed capital. iv) Taxation Policy : This policy must be viewed from both the sides from individual and corporate perspective. From the individual viewpoint both interest and dividend will be taxable in hands of lender.
Briefly explain the term Earnings per share (or EPS)?
After agonizing regarding whether to buy a hot dog or a hamburger along with his last dollar while he goes to the fair, Jeeter at last chooses the hot dog. The hamburger shows Jeeter's: (i) normative choice, because it would be more nutritious. (ii) opportunity cost o
Why entertainment tax comes in indirect tax? Answer: Since its burden can be shifted to others.
Illustrate the rate of exchange of two products?
The theory of pricing for particular goods explained in Adam Smith’s Wealth of Nations is most consistent along with: (1) mercantilist doctrine. (2) Richard Cantillon’s distinction between “value in
Patent rights: It is a unique license or right granted to a company or an Individual to make a specific product or utilize a specific technology.
An increase within demand for "green-certified" products will ________ a firm's economic profit, and the raise within costs to have a product certified like "green" will ________ a firm's economic profit: w) increase; increase x) increase; decrease y)
1. The owner of a firm calculates that next year's profit will be $1,000. Each successive year profit will increase by 10% (i.e. year 2: $1100; year 3: $1210 and so on.) At the end of the 5th year the firm could be sold for $20,000. A) if the appropriate di
How is a shift in demand reflected in a demand equation? How is a shift in supply reflected in a supply equation? How is a movement along a demand (supply) curve reflected in a demand (supply) equation?
Elucidate various national currencies of foreign exchange market?
18,76,764
1937747 Asked
3,689
Active Tutors
1421893
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!