Finance -- Capital Structure

Capital Structure

The term capital structure refers to the relationship between the various long term forms of financing such as debenture, preference share capital and equity share capital. Financing the firm’s assets is a very crucial problem in every business and as a general rule, there should be a proper mix of debt and equity capital in financing the firm’s assets.

Estimation of capital requirements is necessary but the formation of a capital structure is important. According to Gerestenbeg, “capital structure of a company refers to the composition or makeup of its capitalization and it includes all long term capital resources viz. loans, reserves, shares and bonds.”

While capitalization is a quantitative aspect of the financial planning of an enterprise, capital structure is concerned with the qualitative aspect. Capital structure refers to the kinds of securities and the proportionate amounts that make up the capitalization.

Forms/Patterns of Capital Structure:

The capital structure of a new company may consist of any of the following forms –

1. Equity shares only
2. Equity and Preference shares
3. Equity shares and Debentures
4. Equity shares, Preference shares and Debentures


Capital Structure tutors at www.tutorsbiz.com

Tutors at www.tutorsbiz.com have taught and helped many international students in the studies of Capital Structure. The pool of tutors for Capital structure at Tutorsbiz is highly experienced and has an excellent knowledge about all the topics covered under capital Structure. Moreover, by choosing to learn with the experts at Tutorsbiz, you will have the facility to book a time and date which is suitable for you to take a session on Capital structure as our tutors are available 24x7. So this means complete guidance is provided to the students who associate themselves with Tutorsbiz ate any point of time. Our tutors are post graduates in finance management from among the top colleges of the world so the student can be completely sure that he/she will get the best attention in the most simplified manner.

Capital Structure Assignment Help/Homework Help at www.tutorsbiz.com

We provide e-mail based Assignment and Homework Help at www.tutorsbiz.com for Capital structure. Our expert tutors are all well aware of all the aspects of Capital structure and the related terms viz. optimal capital structure, break even point, theories of capital structure so they will be able to solve any queries of the Capital structure Assignment help and Homework Help for the student. Our Capital Structure Assignment Help tutors are available 24x7. We at Tutorsbiz believe that time is money so we realize the importance of your precious time. Hence we try to deliver you the assignment even before the deadline provided to us by you so that you can get enough time to revise the assignment and we have time to make changes in the solutions of the assignment according to your need in case you feel we left out on something. So submit your assignment now by clicking on submit your assignment or mail it to us at info@tutorsbiz.com. We will review the assignment and give you the quote within 6 hours of you submitting the assignment and will try to deliver you the assignment before the deadline.

Some of the topics covered under Capital structure:

1. Importance of Capital Structure
2. Financial Break even point
3. Optimal Capital Structure
4. Financial Risk and Optimal Capital Structure
5. Determine of Point of Indifference.
6. Planning of Capital Structure
7. Effects on EBIT and net income/ calculations
a. Only Equity
b. Equity & Preference
c. Equity & Debt
d. Equity & Preference and Debt
8. Bankruptcy and Agents Cost
9. Capital Gearing and Peck Order Theory
10. Factors determining Capital Structure
11. Projection of Earnings per share
12. Theories of capital structure
    a. Net Income theory 
    b. Net Operating Income theory 
    c. Traditional theory
    d. Modigliani – Miller theory

Submit your finance assignment, finance homework