Dear All friends Can you guide me about the Capital structure, what is capital stracture and importance of capital structure thanx Regards Uttam kumar 9811727408
From India , Delhi
Capital Structure is the one of most important and critical area in Corporate Finance. It is essentially the mix of equity and debt in a company - done with an objective to keep cost of capital at minimum level. Capital Structure Planning involves understanding of business strategy ( M&A, IPO or divestures), and deep analysis of macro-economic environment.
To learn more on Capital Structure, please refer following books--
a) Financial Management ....By I.M. Pandey
b) Financial Management.....By Prasanna Chandra
c) Principles of Corporate Finance....By Brelly & Myers ( Foreign Author)
You may also want to browse through the portal
for concepts and definitions. Also learn the concept of financial leverage which depends on the capital structure.
Sameer Sakharkar
Visiting Faculty-Finance
KC College, Davars`College ( Mumbai)

From India , Mumbai
Dear Sameer, lot of Thanx to you for focusing lights on my topics which i am looking from long time but could not get satisfacaton level. Regads Uttam kumar
From India , Delhi
Biswas-Good to know that my note was useful. Please write in case of further clarifications, since this is not an easy topic to understand. There are lot of complex factors affecting capital structure- interest rates, inflation, macro economic scenario, sectoral policies of government towards fund raising, business strategy ( short term & long term)

I advise you to go through theories of capital structure and concepts like financial leverage. Financial leverage is use of debt in the overall capital mix. Higher the debt compared to equity in the capital structure, the company is said to have high leverage and lower the debt compared equity, the company is said to have low leverage.

Capital structure affects both profitability and liquidity-both are important for business. Capital structure is dynamic across industries and hence sectors like petroleum, steel, cement, capital goods will have more fixed costs and hence have higher operating leverage and financial leverage. While, sectors like consumer goods or financial services, which are asset-light sectors, will have lower financial leverage.

Hope the above helps !!

Sameer Sakharkar

From India , Mumbai
please tells me about the function of a assistant finance manager in service providing company
From India , Jaipur
Dear Prasanta
I am serchingout the fundamental base line of capital structure not budgeting, both quotation are different, when you can know about the structure than you can plan to budget, if you have any article about the capital structure please send l will highly thankful to yours.
Uttam kumar
not any specified criteria for assistant finanace manager, its depands on organisation management poicy.
for your great help!!!
Uttam kumar

From India , Delhi
hi dear all, some one have the capital budgeting notes or ppt extracted from khan and jain text book of financial management... please forward it to me. please....
From India , Bangalore

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