Question

why is capital structure decision important??​

Answer 1

Answer:

capital structure maximize the market value of a firm therefore the decision taken by it are interpreted as important!

Answer 2

Capital structure maximizes the market value of a firm, i.e. in a firm having a properly designed capital structure the aggregate value of the claims and ownership interests of the shareholders are maximized. Cost Minimization: Capital structure minimizes the firm's cost of capital or cost of financing.

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