Question

List out the factors affecting the capital structure of a firm.​

Answer 1

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:

Explanation:

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