S Ltd. is manufacturing steel at its plant in India. It is enjoying a buoyant demand for its products as economic growth is about 7%-8% and the demand for steel is growing. The company has decided to set up a new steel plant to cash on the increased demand. It is estimated that it will require about 2200 crore to set up and about Rs 500 crore of working capital to start the new plant. (a) Identify the decision taken by the finance manager in the above case. (b)Explain any two factors affecting the fixed capital requirements of S Ltd. c)Explain any three factors affecting the capital structure of S Ltd.
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Answer:
(a) he is good business man
Explanation:
(b) its very good point tw retained earning
(c) the capital structure provide better increments the business
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