The Eduladder is a community of students, teachers, and programmers just interested to make you pass any exams. So we help you to solve your academic and programming questions fast.
In eduladder you can Ask,Answer,Listen,Earn and Download Questions and Question papers.
Watch related videos of your favorite subject.
Connect with students from different parts of the world.
Apply or Post Jobs, Courses ,Internships and Volunteering opportunity. For FREE
See Our team
Wondering how we keep quality?
Got unsolved questions? Ask Questions

Business-studies-CBSE-class-12-2017-->View question

Explain briefly any four factors which affect the choice of capital structure of a company -Business studies cbse 2017 class 12

Explain briefly any four factors which affect the choice of capital structure of a company

Asked On2017-07-19 14:16:11 by:milan-ransingh

Taged users:

Be first to like this question

Be first to dislike this question
Talk about this  Like  Dislike
View all qusetions
Factors affecting the choice of capital structure of a company:
i. Cash flow: Debt should be opted by the company only if it has a strong cash flow position. This is because cash would be required to repay the principle along with the interest rate on the debt.
ii. Debt-service coverage ratio (DSCR): It depicts the cash payment obligations of a company as against its availability of cash. In case DSCR is high, the company can opt for more debt.
iii. Equity cost: The cost of equity depicts the financial risk faced by the company. If the financial risk is higher, then the shareholders expect a higher return. This in turn implies a rise in the cost of equity. However, if the cost of equity is high, then it would be difficult for the company to opt for more equity.
iv. Condition of stock market: In situations of good stock market conditions, the company can easily opt for equity capital and vice versa.

Answerd on:2017-07-20 Answerd By:Aparna-Dasgupta

Be first to like this answer

Be first to dislike this answer
Talk about this  Like  Dislike

Stay home and watch eduladder premium videos for free In at this qurentine.

You might like this video:Watch more here

Watch more videos from this user Here

Learn how to upload a video and start earning here

Lets together make the web is a better place

We made eduladder by keeping the ideology of building a supermarket of all the educational material available under one roof. We are doing it with the help of individual contributors like you, interns and employees. So the resources you are looking for can be easily available and accessible also with the freedom of remix reuse and reshare our content under the terms of creative commons license with attribution required close.

You can also contribute to our vision of "Helping student to pass any exams" with these.
Answer a question: You can answer the questions not yet answered in eduladder.How to answer a question
Career: Work or do your internship with us.Work with us
Create a video: You can teach anything and everything each video should be less than five minutes should cover the idea less than five min.How to upload a video on eduladder