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.
This is difficult for firms within highly competitive markets to exploit consumers since: (i) consumer advocates organize boycotts that generate bad publicity. (ii) market pressures force fair distributions of products. (iii) the government sets price
Business Report Objectives This assessment item relat
True or false? “U.S. exports create a demand for foreign currencies; foreign imports of U.S. goods generate supplies of foreign currencies.” Explain.
What are the criteria of issuing stocks or bonds?
For the question below, utilize the given information. The market for gizmos is competitive, with an increasing sloping supply curve and a downward sloping demand curve. With no govt. intervention, the equilibrium price is $25 and the equilibrium quantity is 10,000 gi
XY School District has a large number of students in need of remedial instruction. The superintendent of XY School System can allocated her budget between purchasing X units of remedial instruction at a price of $2,000/unit and spending an amount ($Y) on all other sch
Describe the Functional distribution of income?
Why producers not be able to find enough paying buyers for “public goods”?
To be productively efficient, a country should: (w) maximize the satisfaction attainable from its budget. (x) be concerned only with macroeconomic analysis. (y) concentrate on removing scarcity. (z) maximize the value of output produced through specif
Illustrate the Goals of Mixed Economy?
18,76,764
1927756 Asked
3,689
Active Tutors
1418511
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!