Essays on Capital Structure

Essays on Capital Structure

This page contains a huge base of essay examples to write your own. Capital Structure essay is one of the most common types given as an assignment to students of different levels. At first glance, writing essay on Capital Structure can seem like a challenging task. But we've collected for you some of the most skilfully written to provide you with the best examples you can find online.

We've found 111 essays on Capital Structure

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Importance of Financial Structure and Statements

Introduction This essay discusses the role of financial structures on the profitability and stability of companies and the role of financial statements prepared using historical cost convention and accruals concept in the decision making process. Both aspects of companies discussed here are of much importance …

Balance SheetCapital StructureFinance
Words 2740
Pages 10
Tesco’s Capital Structure

Firstly, as we can see from table1, the gross profit margin of Tesco Group increased during the last five years, from 5. 65% to 6. 08%. Since a subtle change (increase or decrease) in profit margin will induce a significant change in the overall profits, …

Capital StructureInvestmentMoney
Words 931
Pages 4
Verizon Communications Inc.: Capital Structure Choices

Verizon raise funds through internal and external means. Internal means is through the allocation of net cash generation from its operations for allocation on investments and expansion. External means involves debt financing and equity financing. Debt financing refers to taking out loans from financial institutions …

CapitalCapital StructureCommunication
Words 733
Pages 3
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Banker Recommends Share Buyback and Debt to Increase Blaine Kitchenware’s Value and ROE

In summary, recommendation by the banker to buy back 14 million outstanding shares of Blaine Kitchenware with $ 50 million debt and $209 million cash in hand would result in following financial metric changes: Increase the value of the firm through the benefit of tax …

Capital StructureDividend PolicyTax
Words 736
Pages 3
Practical Considerations Influencing Capital Structure

Making the right choice for an appropriate capital structure and an effective dividend policy is any firm’s major concern. This is because the decision not only affects the maximization of returns to the various constituents of an organization, but also contributes a lot to the …

Capital StructureInvestmentMoney
Words 3641
Pages 14
Kevin Carey: Why Do You Think They Are Called For-Profit Colleges

Kevin Carey researches higher education matters for a group called Education Sector. Carey has done many publications for big time newspapers such as The Washington Post, and the Los Angeles Times. He was the Indiana State budget director, and currently teaches education policy at Johns …

BusinessCapital StructureEducation
Words 242
Pages 1
If Venerus Implements the Suggested Methodology?

If Venerus implements the suggested methodology, what would be the range of discount rates that AES would use around the world? * 12% discount rate was used for all projects * Venerus felt that this model worked fairly well In 1990s this model of capital …

Capital StructureFinancial MarketsInvestmentLearning
Words 361
Pages 2
M&M Theory or Capital Structure Irrelevancy Theory

Modigliani and Miller (1958) stated that M&M theory also known as capital structure irrelevancy theory. It stated that financial leverage does not affect the firm’s value in perfect market because without taxes, transactions cost or bankruptcy costs in perfect market and all information are symmetries. …

CapitalCapital StructureTheories
Words 2323
Pages 9
Continental carriers inc

I.Statement of Financial Problem Should Continental Carriers, Inc. use debt or equity to finance the acquisition of Midland Freight in 1988, either by selling $50 million in bonds at a 10% interest rate to a California insurance company with a maturity of 15 years, or …

Capital StructureFinanceFinancial Markets
Words 58
Pages 1
Financial Stability

In the absence of a cash flow statement one cannot shed further light on the cash flow of the company. However, one can contend through horizontal analysis that the main reason for such rise in bank overdraft is due to the substantial investment in fixed …

Capital StructureInvestmentMoney
Words 594
Pages 3
Summary Modigliani & Miller

L1 – Modigliani & Miller (1958) ‘The Cost of Capital, Corporation Finance and the Theory of Investment’ This article mainly discusses the cost of capital, the required return necessary to make a capital budgeting project worthwhile. Cost of capital includes the cost of debt and …

Capital StructureFinanceInvestment
Words 1295
Pages 5
Capital Structure Theories

The following scenario relates to Q46-50. A meeting was conducted by the board of directors of Brocade Co to discuss the balance of equity & debt financing. The following statements were made by the directors: Director A: We should keep our weighted average cost of …

Capital StructureInvestmentMoney
Words 1145
Pages 5
Business Financing and the Capital Structure

Raising Business Capital As a financial advisor to this business there are two options to consider for raising business capital, equity financing and debt financing. The details, advantages, and disadvantages of both options will be provided. Also information about raising capital by selecting an investment …

Capital StructureInvestmentMoney
Words 70
Pages 1
Debt Policy at Ust Inc.: Overview

Executive Summary Holding nearly 80% of the market share in the smokeless tobacco industry, UST Inc. has been generating large and stable income. However, the leading company in a certain industry tends to react slowly to market share erosion by competing firms and lack of …

BusinessCapital StructureCorporations
Words 922
Pages 4
Capital Structure

The aim of this report is to analyses the capital structures of foreign affiliates and internal capital markets of multinational corporations based on three main determinants, which are taxes and capital structure, institutions, markets and external borrowing conditions, and internal capital markets. As for the …

Capital StructureDellTax
Words 570
Pages 3
Stock and Debt

CHAPTER 12 QUESTIONS Operating leverage affects EBIT and, through EBIT, EPS. Financial leverage generally has no effect on EBIT—it only affects EPS, given EBIT. Because Firm A has higher fixed operating costs, its operating income will change by a greater percentage than Firm B’s operating …

Capital StructureFinanceInvestment
Words 3035
Pages 12
Market Timing and Capital Structure for Baker and Wurgler

The results suggest the theory that capital structure is the cumulative outcome of past attempts to time the equity market. Introduction Equity market timing” refers to the practice of Issuing shares at high prices and repurchasing shares at low prices. Equity market timing appears to …

BakerCapital StructureInvestment
Words 1267
Pages 5
The Farce in Anton Chekhov’s The Brute” Heightens Emotional Intensity

The drama essay “The Brute” by Anton Chekhov is typically referred to that subgenre of comedy known as the farce. What separates a farce from the more pedestrian and commonplace “comedy” is that it is infused with a sense of whimsy as well as a …

Capital StructureComedyFinance
Words 736
Pages 3
Essay Summary of Capital structure

A review of capital structure theories 1. 0 Introduction One of the most contentious flnancial issues that have provoked intense academic research during the last decades is the theory of capital structure. Capital structure can be defined as a ‘Mix of different securities issued by …

Capital StructureInvestmentMoney
Words 1044
Pages 4
Capital stracture

Key factors that affect structure choice 5. 1. 1 Profitability and variation of profitability Profitability is one of the most tested company characteristics In empirical research regarding companies choice of capital structure. The trade-off theory predicts that higher profitability is associated with Increased debt levels …

Balance SheetCapital StructureInvestment
Words 819
Pages 3
Study of the capital structure and corporate performance on the listed company in China

1. Introduction (brief introduction) The trade-off theory suggests an optimal mix of debt and equity for a firm to make the cost of capital structure minimum. There are a lot of empirical studies to figure out the determinants of capital structure, these determinants which imply …

Capital StructureCompanyMoney
Words 6418
Pages 24
Gearing and Capital Structure: Financial Business

On 15th December 2011, a marketing agency declares an interim ordinary dividend of 9.3c/share and a final ordinary dividend of 10.2c/share. Assuming an ex-div share price of 612c, what is the dividend yield? (MCQ) A company has $205m assets and has liabilities of $70m. Current …

Capital StructureInvestmentMoney
Words 308
Pages 2
Future financial stability

Most students (or their parents) have been required to make a sizeable contribution towards the cost of obtaining a degree since maintenance grants were phased out in favour of loans and tuition fees introduced in 1998.1 With the proposed controversial top up fees on course …

Capital StructureEducationFinance
Words 1030
Pages 4
How Firm Characteristics Affect Capital Structure

Chapter 1 Introduction Financing decisions are integral to the value creation of the firm. According to financial theories a variety of financing decisions impact the welfare of the firm. Capital structure composition plays a vital role as one false decision can lead to long term …

Capital StructureMoney
Words 7716
Pages 29
Dividend Policy & Capital Structure

“Comparative Analysis of Dividend Policy & Capital Structure” Prepared For: Lutfur Rahman Senior Lecturer, Department of Business Administration, East West University. Course Code: FIN-435 Course Title: Managerial Finance Prepared By: Md. Habibur Rahman Utpal Kumar Ghosh ID: 2006-2-10-175 ID: 2006-2-10-179 Date of Submission: August 11, …

CapitalCapital StructureDividend Policy
Words 4642
Pages 17
Managing Financial Resources and Decisions

Executive summary This report is to propose an appropriate capital structure for Xpresso Delight Limted’s business expansion with the minimum amount of capital as US$ 30 million. In order to achieve that goal, firstly, it is going to identify the sources of finance available for …

Capital StructureFinanceInvestment
Words 3261
Pages 12
News Summaries

A July 9 online article from dallasnews. com, entitled Top 10 personal finance mistakes, provides a prime example of one form of learning: lesson by failure. The article discusses ten common pitfalls when individuals are addressing their own financial tasks. By shining a spotlight on …

Capital StructureFinanceInvestment
Words 60
Pages 1
Discuss The Impacts of Taxation

When a firm faces new investment opportunities (or to keep its functioning) which have positive net present values, financing needs come along. The options range from using cash generated from operations to simply forego the projects. If the company wants to take its projects, when …

Capital StructureFinanceMoney
Words 105
Pages 1
Describing Gearing and Its Importance in Capital Structure of a Company

A company with low gearing is one that is mainly being funded or financed by share capital (equity) and reserves, whilst the one with a high gearing is mainly funded by loan capital. Now the question to address is which of the two (equity and …

Capital StructureCompanyInvestmentMoney
Words 827
Pages 4
Columbia Capital Structure

Some other risk factors include substantial cyclical fluctuation, the effects of unseasonable weather conditions, and the popularity of the outdoor activities. In order to minimize the negative impacts on this business, the company started a series Of strategic initiatives, such as product innovation program, new …

Capital StructureInvestmentMoney
Words 577
Pages 3
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Find extra essay topics on Essays on Capital Structure by our writers.

Capital structure in corporate finance is the mix of various forms of external funds, known as capital, used to finance a business. It consists of shareholders' equity, debt, and preferred stock, and is detailed in the company's balance sheet.

Frequently asked questions

What is capital structure essay?
It depends on the specific company and what their goals are. However, in general, a company's capital structure is the mix of debt and equity that it uses to finance its operations and growth. The goal is to find the right balance that minimizes the cost of capital while still providing the funds necessary to support the company's business plan.There are a number of factors to consider when determining the optimal capital structure, including the company's financial goals, the industry it operates in, and the current market conditions. The mix of debt and equity will also affect the company's risk profile and its ability to raise additional funds in the future.Ultimately, the decision of what is the best capital structure for a particular company is a complex one that requires a detailed analysis of all of the factors mentioned above.
How do you explain capital structure?
One way is to think of it as the mix of a company's long-term debt, specific short-term debt, common equity and preferred equity. Another way to think of it is as the way a company finances its assets through a combination of debt and equity.The capital structure of a company is important because it can have a significant impact on a company's cost of capital, financial flexibility and risk profile. A company's capital structure is also a key factor in determining its credit rating.
Why is capital structure so important?
Capital structure is important because it determines the mix of a company's financing sources. The mix of financing sources affects the cost of capital and the level of financial risk. The cost of capital is the weighted average cost of all the financing sources, which is used to fund a company's investments. The level of financial risk is the amount of variability in a company's earnings. A company with a higher level of financial risk is more likely to default on its debt obligations.
What is good capital structure?
The optimal capital structure for a company will vary depending on its individual circumstances. However, there are a number of factors that can be considered when assessing what is a good capital structure for a company. These include the company's financial position, its business model and growth plans, the level of debt financing it is comfortable with, and the costs associated with different types of financing. Ultimately, the goal is to strike a balance between these factors that allows the company to maximize its value and minimize its financial risk.

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