What is optimal capital structure?

Q: What is optimal capital budget?

A: Budget: The estimation of the income and expenditure of the particular future period and is…

Q: What distinguishes a capital investment from other investments?

A: Investments: It is the method by which an investor increases his value over some time for future…

Q: What are the benefits and corresponding risks of Financial Investment?

A: Financial Investments are investments that are made with the expectation to receive future financial…

Q: What is the goal of capital structure management?

A: In simple words, capital structure management refers to the process under which the managers take…

Q: What is meant by the ''institutionalization'' of capital markets?

A: ''Institutionalization'' of capital markets refers to the gradual domination of the capital markets…

Q: What does capital structure theory attempt to do?What lessons can be learned from capital structure…

A: Capital structure is defined as mixture or proportion of all kinds of capital such as debt, equity…

Q: What are capital resources?

A: Capital resources are goods produced and used to make other goods and services. Capital resources…

Q: What are the ramifications of having Working Capital?

A: The Ramifications Of Having Working Capital Will Be Explained:

Q: What are investment returns?

A: Investment returns are a performance measure used to evaluate a speculation’s adequacy or to think…

Q: What is the total investment approach?

A: Total Investment Approach: In the Total Investment Approach, there is a risk-return tradeoff in the…

Q: Explain what is capital or capital financing? Examples

A: capital financing is the form of business finance that is raised through equity funds and lenders…

Q: What is the return on investment (ROI)?

A: Introduction: An investment is the acquisition of an asset or object with the intention of earning…

Q: What is the role of capital market?

A: Introduction : Savings, as well as investment opportunities, are routed between providers…

Q: What is operating capital?

A: Introduction: In any business, operating capital is the most important asset that enables a company…

Q: What is investor-supplied capital?

A: A business might make a return on its invested capital that surpasses the cost of that capital.

Q: Explain the problem of a capital-investment?

A: For the financing of capital investment, generally, the company considers operating cash flow of its…

Q: Discuss the concept of an optimal capital structure

A: Introduction: Cost of capital is nothing but the minimum yield expected on the financial investments…

Q: Derivation of capital asset pricing model

A: The Capital Asset Pricing Model (CAPM) relates the returns on individual assets or entire portfolios…

Q: Explain the optimal capital structure and the target capital structure?

A: The capital structure simply means to make long-term capital for a firm. The capital structure of a…

Q: What does effective capital budgeting require?

A: Capital budgeting is the process of evaluating large-scale investments or expenditures. The…

Q: What is capital? Give the composition

A: Capital means the amount that belong to the business or owner of the enterprise. Capital means the…

Q: What is Capital market

A: Capital market: It refers to the organised market where the individual and the organisation buy and…

Q: What is the capital structure

A: The capital structure was its unique mixture of equity and debt that a business uses to fund its…

Q: why is a risk analysis important to the capital investment decision making process?

A: Risk is the uncertainty or possibility of loss due to the decision in investment process. Of all the…

Q: What is capital structure and why it is important?

A: Introduction: While selecting a capital structure main motive of the company is shareholders wealth…

Q: What are the advantages of the PI method of capital budgeting?

A: The ratio that evaluates the profitability of the investment is term as the profitability index…

Q: What is capital

A: Capital is the value of money which is invested in the organisation for making the financial…

Q: What is the trade-off theory of capital structure?How does it differ from MM’s theory?

A: Trade off theory of capital structure: This is a theory in which the company decides on the ratio of…

Q: What is the capital asset pricing model (CAPM)? What are the assumptions that underlie the model?

A: Capital Asset Pricing Model is the most common security pricing model used in Finance. It is…

Q: What is investment strategy?

A: Investment strategies are generally used by the investors in order to protect themselves from any…

Q: What is meant by investment yields?

A: Investment Yield:  It defined as Earnings or income which is earned on investment over the period of…

Q: Why is working capital part of cash payouts in a capital investment, and what is its makeup?

A: The investment is an allocation and the commitment of the specific amount of funds to get the…

Q: What is meant by capital structure?

A: CAPITAL STRUCTURE IS THE MIX OF THE LONG-TERM SOURCES OF FUNDS USED BY A FIRM . IT IS MADE UP OF…

Q: Capital; capital structure; optimal capital structure

A: Capital: Ownership of assets of financial nature is termed as capital. Capital can be used for…

Q: Define signaling theory (capital structure)

A: Capital structure: Capital structure is defined as mixture or proportion of all kinds of capital…

Q: What is net working capital?

A: Net working capital: Net working capital is also known as the working capital. To compute the net…

Q: What is return on investment?

A: Return on investment  is a financial ratio which is measured as net income divided by the cost of…

Q: What does Working Capital Mean?

A: The excess of Current Assets over Current Liabilities is known as Working Capital  current assets…

Q: What is working capital?

A: Working capital is the difference between current assets and current liabilities. It is a measure of…

Q: What is a target capital structure?

A: Capital structure is the combination of debt and equity used by the company to finance its business.

Q: What does “investment risk” mean?

A: Risk is referred as uncertainty or loss. Financial risk is referred as the variability of actual…

Q: What is Capital gearing and how might it be calculated?

A: Meaning of Capital Gearing  Capital gearing is the ratio between total equity and total debt ( Fixed…

Q: Identify and explain the functions of Capital Markets with supporting examples?

A: The market where both buyer and seller interest in order to buy as selling of financial securities…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.