What do we mean by the optimal capital structure for a company
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- What do we mean by the optimal capital structure for a company?
- Discuss ways that a parent company might pay for a target acquisition company.
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- Is it realistic to believe that an optimal capital structure exists or might be achieved by a company?What are we referring to when we discuss the “optimal capital structure” of a business? Why is the optimal capital structure also referred to as the “target capital structure”?What is meant by capital structure, what are the characteristics of it's main components, and how that may affect a company solvency?
- Which is more important to a company capital or O&M? Why?How does a semi-strong market affect a company’s capital structure? Discuss the possible exposures and impact. Provide examples to justify your reasoning.how can a company can raise capital through the issuance of equities?Include the advantages and disadvantages of the methodology.
- What factors contribute to the business risk of a company? What is financial risk? How do the various sources of risk affect the optimal capital structure?Explain in detail why company valuation is influenced by capital structure decisions.Which kind of company ownership is optimal for an upcoming start-up?
- The financial leverage implications for company analysis?How do a company’s investment opportunities, capital structure,and working capital policies affect its distributions to shareholders?What is total net operating capital? Why is it important formanagers to calculate a company’s capital requirements?