Explain the factors deciding the need of capital.
Answers
Answered by
9
Answer:
Trading on Equity- The word “equity” denotes the ownership of the company. Trading on equity means taking advantage of equity share capital to borrowed funds on reasonable basis. Trading on equity becomes more important when expectations of shareholders are high.
Answered by
72
Answer:
The various factors which influence the decision of capital structure are:
- Cash Flow Position: ...
- Interest Coverage Ratio (ICR): ...
- Debt Service Coverage Ratio (DSCR): ...
- Return on Investment: ...
- Cost of Debt: ...
- Tax Rate: ...
- Cost of Equity: ...
- Floatation Costs:
Similar questions