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q describes net income approach to capital structurenet income approach - as-per to the net income approach as suggested by durand the capital
q definition of financial leverageone of the goals of planning an appropriate capital structure is to maximize the return on equity shareholders fund
q what do you mean by utilityutility - financial leverage assists considerably the financial manager while devising the capital structure of the
q what do you mean by financial leveragefinancial leverage - the financial leverage perhaps defined as the tendency of the residual net profit to
q illustrate the operating leverageoperating leverage - the operating leverage perhaps defined as the tendency of the operating profit to differ
q define leveragemeaning of leverage - the dictionary significance of the term leverage refers to an increased means of accomplishing some purpose
q describe market value weightsmarket value weights - as per market worth scheme of weighting the weights to dissimilar sources of finance are
q explain about book value weightsbook value weights - book value weights are calculating form the values taken from the balance sheet the weight to
calculation of weighted average cost of capitalthe calculation of weighted cost of capital involves the following stepsi calculate the cost of each
q what is denoted by weighted average cost of capital or composite how is it calculated exemplify with an exampleans weighted average cost of capital
cost of retained earning - it is on occasion argued that retained earnings carry no cost since a firm isnt required to pay dividend on retained
q evaluate earning yield plus growth in earning methodearning yield plus growth in earning method - if the eps of a company is likely to grow at a
q illustrate earning yield methodearning yield method - as per this method cost of equity capital is calculated by establishing a relationship
q dividend yield plus growth in dividend processdividend yield plus growth in dividend process - this process is used to compute the cost of equity
q describe the dividend yield methoddividend yield method - this process is based on the assumption that when an investor invests in the equity
q cost of equity share capitalcost of equity share capital - the cost of equity is the utmost rate of return that the company should earn on equity
q cost of redeemable preference share capitalcost of redeemable preference share capital - redeemable preference capital has to be returned to the
q evaluate cost of preference share capitalcost of preference share capital - a fixed rate of dividend is to be paid on preference shares however
q determine cost of redeemable debtcost of redeemable debt - usually a company issues a debt which is redeemable subsequent to a certain period
q evaluate cost of irredeemable debt subsequent to taxcost of irredeemable debt subsequent to tax - when a company utilizes debt as a source of
q calculation of cost of capitalcalculation of cost of capital - calculation of cost of capital includesa calculation of cost of specific sources of
q how will you conclude the cost of capital from different sourcesans implication of cost of capital - cost of capital of a firm is the least rate of
q trouble in determination of cost of capitaltrouble in determination of cost of capital-1 historic cost as well as future cost - one main problem in
q importance of the cost of capitalimportance of the cost of capital-1 useful in designing the capital structure - the perception of cost of capital
q what do you signify by cost of capitalwhat do you signify by cost of capital what is its meaning and what are the problems in determination of cost