- 1 Introduction 1.1 Introduction Capital structure concept holds a major place in a financial management. Capital structure refers the proportion of debt and equity capital .A perfect balance between debt and equity is required to ensure tradeoff between risk and return. Thus‚ optimal capital structure means the capital structure having reasonable of proportion of debt and equity. An optimal financial structure makes better use of society’s fund of capital resource ‚and thus it increase the total
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Introduction Capital structure (CS) is one of the most important aspects of the Financial Management of any organization. It aims is to identify and implement the best capital structure proportion possible that suits the organizations needs and objectives. An optimal Capital structure boosts the prosperity of the company in the long run and reduces the risk. CS is a mixture of a company ’s current and non current debt‚ common and preferred equity. It ’s the way a company finances its functions
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CAPITAL STRUCTURE: MEANING: - Capital structure of a firm is a reflection of the overall investment and financing strategy of the firm. - Capital structure can be of various kinds as described below: ▪ Horizontal capital structure: the firm has zero debt component in the structure mix. Expansion of the firm takes through equity or retained earnings only. ▪ Vertical capital structure: the base of the structure is formed by a small amount
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Financial Management Unit – 4 Capital Structure Capital Structure • It refers to the kinds of securities and the proportionate amounts that make up capitalization. • A decision about the proportion among the three types of securities viz.‚ Equity shares‚ Pref. Shares and Debentures refers to the Capital Structure of an enterprise. What is “Capital Structure”? • Definition The capital structure of a firm is the mix of different securities issued by the firm to finance its operations
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Group January 2006 Corporate Capital Structure Authors Henri Servaes Professor of Finance London Business School The Theory and Practice of Corporate Capital Structure Peter Tufano Sylvan C. Coleman Professor of Financial Management Harvard Business School Editors James Ballingall Capital Structure and Risk Management Advisory Deutsche Bank +44 20 7547 6738 james.ballingall@db.com Adrian Crockett Head of Capital Structure and Risk Management Advisory‚ Europe & Asia Deutsche
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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
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Capital Structure In finance‚ the term “capital structure” refers to the way a firm finances its assets. Generally speaking‚ there are two main forms of capital structure: debt financing and equity financing (Cumming 52; Myers‚ 83). Each type has its own advantages and disadvantages‚ and an essential task for the successful manager of a firm is to find an optimal capital structure in terms of risk and reward for stockholders. When making decisions that affect capital structure‚ managers must be
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THE IMPLICATIONS OF CAPITAL STRUCTURE THEORY AND REGULATION FOR SOUTH AFRICAN BANKING INSTITUTIONS By WESLEY NAIDU Submitted in partial fulfillment of the requirements for the degree MAGISTER COMMERCII in FINANCIAL MANAGEMENT SCIENCES In the FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES At the UNIVERSITY OF PRETORIA SUPERVISOR: Prof. JOHANNES HvH DE WET November 2011 -i- ABSTRACT The topic of capital structure has been one that has plagued the academic world for a number of years
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Capital structure describes how a corporation has organized its capital—how it obtains the financial resources with which it operates its business. Businesses adopt various capital structures to meet both internal needs for capital and external requirements for returns on shareholders investments. As shown on its balance sheet‚ a company’s capitalization is constructed from three basic blocks: Long-term debt. By standard accounting definition‚ long-term debt includes obligations that are not
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117 Capital Market - Clearing and Settlement IS M R Capital Market - Clearing and Settlement Introduction The transactions in secondary market pass through three distinct phases‚ viz.‚ trading‚ clearing and settlement. While the stock exchanges provide the platform for trading‚ the clearing corporation determines the funds and securities obligations of the trading members and ensures that the trade is settled through exchange of obligations. The clearing banks and the depositories provide
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