hareholder and on the riskiness of the equity investment affecting the marke
vice of the equity or the value of the firm. Therefore, determining the optima
apital structure is always difficult for the finance manager. Theoreticall
peaking, a judicious use of debt and equity in capital structure can maximize th-
alue of the firm.
So, we can say that the level at which overall cost of capital is least, can be th
timal capital structure for the company.
b) See Q. 17(ii), Unit III (Practical Problems).
[Page
2. 4. (a) List the factors which have a bearing on the dividend policy of
mpany.
b) The following information is available for Logic Enterprises:
Earings of the company
315,00,000
Dividends paid
*5,00,000
No. of issued shares
1,00,000
Price earnings ratio
10
Rate of return on investment
15%
'ind the market price of the share. Are you satisfied with the curre
ridend policy of the firm? If not, recommend an optimal dividend policy.
Ans. (a) See Q. 2, Unit IV.
[Page
Earning of the firm 15,00,000
Answers
Answered by
2
Answer:
hi dal do you have any questions or concerns please visit the same is true that the same is true that the Sameer please find attached files for the same is true
Similar questions