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Unit - 03 by shivshankarkumarnep986 is a document available to read on EtoBox.
Capital structure refers to how a company finances its operations through a mix of debt and equity. An optimal capital structure minimizes the cost of capital and maximizes company value by balancing financial risk and return. Factors affecting capital structure include cost of capital, risk, cash flow position, and market conditions, while theories like the Net Income Approach and Traditional Approach provide frameworks for understanding the implications of different financing strategies.
- Author
- shivshankarkumarnep986
- Language
- EN