Answer to Question #270582 in Accounting for Nhlaphu

Question #270582

With reference to financial management, write a short essay on the concept of capital structure as a key fundamental in respect of managers’ maximising corporate value for shareholders. Maximum 600 words and include references.

1
Expert's answer
2021-11-24T12:37:23-0500

The capital structure decision is critical to the firm since the optimal capital structure reduces the firm's overall cost of capital while also increasing its value. The use of debt funds in capital structure raises EPS since debt interest is tax deductible, resulting in a rise in share price.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS