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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- 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”?Is it realistic to believe that an optimal capital structure exists or might be achieved by a company?What is meant by capital structure, what are the characteristics of it's main components, and how that may affect a company solvency?
- 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?how can a company can raise capital through the issuance of equities?Include the advantages and disadvantages of the methodology.How does a semi-strong market affect a company’s capital structure? Discuss the possible exposures and impact. Provide examples to justify your reasoning.
- 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?
