Financing Decisions
Excellent commerce point > Financing Decisions
Financing Decisions Leverages
18
Jun
Financing Decisions Leverages Question 1.What do you understand by Business Risk and Financial Risk? (Nov 2009, 2 marks)Answer:Business RiskIt refers to the risk associated with the firm’s operations. It is uncertainty about the future operating income. That is, how well can the operating income be predicted? It can be measured by standard deviation of basic […]
Financing Decisions Capital Structure
18
Jun
Financing Decisions Capital Structure Question 1.Answer the following:What is Optimum Capital Structure? Explain. (Nov 2007, 2 marks)ORAnswer the following:Discuss the concept of ‘Optimál Capital Structure.” (Nov 2008, 2 marks)Answer:Capital structure is optimum when the value of the firm is maximum and Cost of capital (debts & equity) is minimum and so market price per share […]