Financial Management-Capital Structure (CBSE Class-12 Business-Studies): Questions 1 - 5 of 5

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Question number: 1

» Financial Management » Capital Structure

Short Answer Question▾

Write in Short

The Board of Directors has asked you to design the capital structure of the company.

Explain any six factors that your would consider while doing so.

Question number: 2

» Financial Management » Capital Structure

Essay Question▾

Describe in Detail

The board of Directors has asked you to design the capital structure of the company. Explain any six factors that you would consider while doing so.

Explanation

To design the capital structure of the company six factors to be considered are:

  1. Interest coverage ration (ICR)
  2. Cash Flow Position.
  3. Debt Service coverage ratio (DSCR)
  4. Tax rate.
  5. Cost of debt
  6. Return on investment (ROI)

Question number: 3

» Financial Management » Capital Structure

Appeared in Year: 2005

Essay Question▾

Describe in Detail

Explain any five factors which affect the capital structure of a business Enterprise.

Explanation

Capital structure represents the proportion of debt and equity in the capital structure of business

  1. Size of firm: large firms have low bankruptcy ratio and high profitability so debt ratio is higher in this firm compare to the smaller firm.
  2. Business risk: depending on the risk level capital structure of… (197 more words) …

Question number: 4

» Financial Management » Capital Structure

Appeared in Year: 2006

Short Answer Question▾

Write in Short

What is meant by ‘Capital Structure’ in financial management?

Question number: 5

» Financial Management » Capital Structure

Appeared in Year: 2006

Short Answer Question▾

Write in Short

Explain any three causes of over-capitalization.

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