What is a company's capital structure and why is it important?

Q: explain the concept of cost of capital and how would you determine the WACC of the firm.

A: Cost of capital refers to the cost incurred in availing the source of finance. Cost of capital is…

Q: Explain what is the capital structure of a company.

A: Company raise money by different means to finance growth and operations of company.Combinations of…

Q: how the capital structure, cost of capital, and dividend decisions are related?

A: A dividend is a distribution of a portion of a corporation's earnings to a class of shareholders…

Q: What are the financial resources of the company which are also kanown as working capital

A: Financial resources is a term covering all financial funds of an organization. They are part of…

Q: How do I determine the amount of capital a company has?

A: Capital: Capital are funds invested by investors in business. The investors invest in form of…

Q: what is financial leverage and its implications for company performance?

A: Company borrow amounts to buy assets and do business.

Q: a. What is meant by a company's cost of capital? b. Why is the company's cost of capital critical…

A: Company needs fund to purchase the assets and for operations. Companies finance with Debt and…

Q: Explain some of the factors that can affect the cost of capital and describe whether or not it is…

A: The cost of Capital can be affected by many things. It may be within the control of the company or…

Q: what determines the market value of a company are not profits, per se, but rather, cash flows?

A: Market value of a company : In simple words, the market value of a company refers to the value of a…

Q: What three policies under the firm’s control affect its cost of capital?

A: Cost of capital: It is the anticipated return required to form a capital budgeting venture…

Q: When placed in the context of looking at a company's capital structure, are there different…

A: Weighted Average Cost of Capital (WACC) is the rate at which the company is willing to pay to its…

Q: What is operating capital, and why is it important?

A: Answer: Companies need funds to acquire net operating assets and to run day-to-day business…

Q: What is total net operating capital? Why is it important formanagers to calculate a company’s…

A: The total net operating capital is nothing but the total of net working capital and operating…

Q: Explain how firms choose between sources of capital. Explain clearly with characteristics of each…

A: A business firm may have various sources to finance their capital and an optimum capital structure…

Q: What are the main components of a company’scost of capital?

A: Cost of capital It is essential to come back to make a capital planning venture advantageous, for…

Q: What is capital structure of a company and explain why it is important?

A: The capital structure of a company and explain why is important will be explained:

Q: Explain what is the Weighted Average Cost of Capital (WACC) and why is it important for a company…

A: Weighted average cost of capital is the rate at which a company is expected to pay for its…

Q: Why are capital market data and information useful when a firm is considering its cost of capital?

A: Capital costs are a valuable financial and accounting tool that can be used by corporations and…

Q: EXAMINE THE IMPOTANCE OF WORKING CAPITAL TO A  BUSINESS OR COMPANY

A: Working capital is the amount of money that a company needs to run its business on a day-to-day…

Q: What is a working capital, and how does it differ from other types of capital? What role does it…

A: Business process are the sequential steps followed by the stakeholders to reach a certain goal. Each…

Q: What is operating capital?

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

Q: What is meant by working capital? What is significance of working capital management?

A: Working capital is the amount which the company would require to fund its day to day operations. It…

Q: Is cost of capital set by investors or managers?

A: Cos of capital (Coc) is rate of return required to make capital budgeting decisions for example,…

Q: company's cost of equity capital?

A: Given :  Beta of Stock = 1.29 Risk free rate = 5.4% Expected return on market = 12.9%   Formula for…

Q: What is net investment in operating capital?

A: The Net investment in operating capital is a two-part study that discusses two various types of…

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: How is EPS determined for a company with a simple capital structure?

A:

Q: Which is more important to a company capital or O&M? Why?

A: Capital Expenditure Capital expenditure is one of the important  factors of the company.  It is the…

Q: What does capital structure of a company means?

A: Capital structure of a company is the proportion of various long term sources of finance used to…

Q: Under what assumptions market value of a company does not depend on its capital structure

A: One important concept in Modigliani and Miller theorem that market value does not depends on the…

Q: What is the company's weighted average cost of capital?

A: Here, Debt (w2) = 23% Common stock (w1) = 77% Expected return on debt (before-tax) (Kd) = 5.3%…

Q: how a company can raise capital through the issuance of equities.

A: On the other hand, equity capital comes not through borrowing, but through the sale of shares of the…

Q: How do the types of assets used affect a firm’s capital structure?

A: There are 2 types of assets, fixed assets and current assets. Fixed assets have life for long period…

Q: What is the use of Capital Investment Decisions in a business as well as its role, function and how…

A: Investment appraisal or evaluation is the two-fold task of balancing risk pertain to a definite…

Q: What is a working capital? What is its importance in the business process?

A: Accounting is a way of recording money related transactions in the financial statements of an…

Q: Explain in detail why company valuation is influenced by capital structure decisions.

A: Capital structure of a company shows how has the company raised its capital. A company's capital…

Q: What is Weighted Average Cost of Capital or WACC? How can current economic and political…

A: Weighted average cost of capital is the cost of capital to the firm inclusive of the cost of capital…

Q: What are three factors under the firm’s control that can affect its cost of capital?

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

Q: How can a company raise capital

A: A corporation or a company is a separate entity that is established legally and is identified as a…

Q: How does the firm’s internal condition affect its actual capital structure?

A: The capital structure is the structure of mix of debt and equity which shows how a company has…

Q: Describe the ways in which capital can be transferred from suppliers ofcapital to those who are…

A: One of the functions of a financial market is the facilitating of funds from those who have in…

Q: Why is the management of working capital important?

A: Working capital can be defined as that portion of capital invested by a businessman to fulfill his…

Q: What are the sources or capital available to business? Why is the capital mix of a company so…

A: The percentage of capital (money) at work in a business is referred to as “capital structure” or…

Q: What is the capital structure of the company?

A: Here Is The Answer:

Q: How do “windows of opportunity” impact a firm’s capital structure?

A: Windows of opportunity : In simple words, windows of opportunity, in this context, relates to the…