Question

why capital structure decision is important ? Samjaye please ​

Answer 1

Reduces Financial Risk: Balancing the proportion of debt and equity in the business through capital structure assist the business firms in managing and minimizing risk. Minimizes Cost of Capital: It provides for planning the long term debt capital of the company strategically and thus reducing the cost of capital.

Answer 2

Answer:

Capital Structure, as the name suggests, means arranging capital from various sources, in order, to meet the need of long-term funds for the business. ... Thus, capital structure is extremely important and capital structure decisions or practices have a significant role to play in corporate financial management.Oct 23, 2019