Unit 3- Capital structure and capitalization
Capitalization and its theories
Understanding Capitalization in Business Introduction Every business aims to maximize its value. ...
Over capitalization and Under capitalization
Over-Capitalization Concept of Over-Capitalization Over-capitalization is a situation where a co...
Watered stock, under trading and over trading
Watered Stock Watered stock is an illegal practice where a company issues shares at a value that ...
Capital Structure: Meaning, Importance, and Determinants
What is Capital Structure? Think of a building's framework. It's not made of just one material; i...
Capital gearing and theories of capital structure
What is the Capital Gearing Ratio? The capital gearing ratio, also known as the debt-to-equity ra...
Effect of capital structure on EPS, EBIT-EPS Analysis
The Link Between Capital Structure and EPS As we've discussed before, a company's capital structu...
Point of Indifference
Understanding the Point of Indifference The point of indifference, in the context of capital stru...