Capital Structure

tructure CORPORATE FINANCE PROJECTPRACTICAL CONSIDERATIONS OF CAPITAL STRUCTURE OF A COMPANY IN INDIASubmitted to: Submitted by:Mr. Rajesh Jhamb Atul Pabbi 09104013Priyanka Bhola 09104043Rahul Mahajan 09104045Shreya Adya 09104052ACKNOWLEDGEMENTAn acknowledgement is not just a mere formality but a true opportunity to express my sincere gratitude towards all the people who have been of great help and have played an important role in making the training a great learning experience providing us with the right exposure in the industry. I would like to express my profound gratitude to Mr. Rajesh Jhamb, who made the project well structured so that i could learn a lot during this survey. His motivation and encouragement were the key to success of this program. He has been a constant source of inspiration to me throughout the period of my Industrial Training.I would also like to express my sincere thanks to Mr. Saurav Chopra (Tata Motors) for constantly guiding me in my entire training period. It was his competent guidance, constant encouragement and critical evaluation that helped me develop a new insight into my work.My report will not be complete without expressing my sincere thanks and appreciation to all those who have contributed directly or indirectly towards completion of my training.Atul Pabbi 09104013Priyanka Bhola 09104043Rahul Mahajan 09104045Shreya Adya 09104052CONTENTS * Introduction * CAPITAL STRUCTURE: Definition * Features of An APPROPRIATE CAPITAL STRUCTURE * Forms of CAPITAL STRUCTURE * CAPITAL STRUCTURE: Major Considerations * Factors Determining CAPITAL STRUCTURE * FINANCIAL LEVERAGE: * Definition * Financial Leverage and the Shareholders’ Return * Effect of Leverage on ROE and EPS * CAPITAL STRUCTURE THEORIES * CAPITAL STRUCTURE OF TATA MOTORS LTD.INTRODUCTIONWhat is CAPITAL?Capital refers to the funds a company has available to fuel growth and expansion. A corporation can obtain capital from equity sources