What should be considered as best in the company's view
either debt or equity? Explain briefly?

Answer Posted / v.hemant kumar

Capital stucture of the company should be built up before
taking any decisions with regard to the ratio of debt &
equity of a company . For this purpose only there are
instruments like capital budgetting & deciding the cost of
capital & leverage analysis are used. However no company
exists without equity or debt. It also depends on the risk
taking factor of the company. IF the company is higly risky
it opts for more of debt & less risky option is debt

Is This Answer Correct ?    1 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

EXPAND___________NAC

1612


What is the use of final account?

1405


how to check which item is sold by the sundry debtors in tally?

1652


What are Mortgage Payment Problems?

1523


please give me a last 10 years sbi clerk question and answer paper

1534






give the examples of Error of Duplication?and Error of compensatin? with entries

4013


what is the meaning of input vat & out put vat?

3536


Expand-------CAN

1440


Guest expenses Rs 5500/-on behalf of partner Aravind was written as Hospitality. Rectify it

1458


We did promotion activity for X co that co is our client ( S Dr) which we sold tickets through our vendor through out north india ... But those vendors adjusted cash with thir bill and remaining balance we received ,, Ticket amount we paid from our co Bank A/c to our client (S Dr) .the amount is too huge so how can i sort out this in books of acconts ..............

1502


Please let me know what to answer how long you prepared for SBI exam? if selected your credit goes to whom?

1603


What is specific reserve

2022


In sales what rule applicable

1437


HI, FREINDS, I WANT TO KHOW IS THE CFP (CETICFIED FINANCIAL PLANNER) IS A GOOD COURSE, IS THEY ANY INSISTUTE IN HYDERABAD,IF ANY ONE DOING THIS COURSE PLEASE REPLY ME.

1874


Is advance paid wages has credit balance?

1096