What type of earnings per share presentation is requiredin a complex capital structure?

Q: how the capital structure, cost of capital, and dividend decisions are related?

A: A dividend is a distribution of a portion of a corporation's earnings to a class of shareholders…

Q: How does sales stability affect the target capital structure?

A: Target capital structure: Target capital structure is defined as the combination of debt, preferred…

Q: How does the availability and cost of outside capital affect dividend policy?

A: The question is based on the concept of dividend policy and factors of dividend policy.

Q: Which are more critical to the dividend decision, earnings or cash flow? Explain.

A: The dividend is the amount paid to the equity shareholders in return to the amount of investment in…

Q: Why is the distinction between paid-in capital andretained earnings important?

A:

Q: What are the main components of a company’scost of capital?

A: Cost of capital It is essential to come back to make a capital planning venture advantageous, for…

Q: hat does it mean by analyse profitability of invested capital

A: Introduction : In simple words, invested capital refers to the sum of all the funds that a business…

Q: Why are Earnings per Share important?

A: The ratio analysis helps to analyse the financial statements of the business on the basis of various…

Q: at is the relationship between WACC and capital structur

A: In the capital budgeting decisions WACC is very important and it act as hurdle rate of return what…

Q: How do the availability and cost of outside capital affect dividendpolicy?

A: Dividends are the profits that are paid to the stockholders. The company always tries to achieve a…

Q: how does cost of capital affects a firm's decision on the distribution of dividends?

A: Cost of capital is defined as an required return, which is important for making the capital…

Q: describe how earnings per share is calculated and calculate and interpret a company’s earnings per…

A: Earnings per share (EPS) is a company's net profit divided by the number of common shares it has…

Q: What is the Cost of Equity? What is the Weighted Average Cost of Capital? WACC

A: Interest on debt = 9% Weight of Debt = 60% Weight of Equity = 40% Risk Free Rate in USA = 6% Risk…

Q: When does a firm said to have a complex capital structure?

A: Capital structure of a company means mixture of debt and equity sources of finance of the company…

Q: Under what assumptions market value of a company does not depend on its capital structure

A: One important concept in Modigliani and Miller theorem that market value does not depends on the…

Q: Define the term Return on Common Equity? How does it measure profitability?

A:

Q: Explain in detail why company valuation is influenced by capital structure decisions.

A: Capital structure of a company shows how has the company raised its capital. A company's capital…

Q: what are the similarities between paid-in-capital and retained earnings

A: The answer is as fallows

Q: When does a share capital becoming outstanding?

A: Share capital consists of authorized share capital, issued and paid up share capital.

Q: Describe how the following factors affect external capitalrequirements: (1) payout ratio, (2)…

A: The funds which are raised externally i.e from outside sources is called external financing. The…

Q: What do the three theories indicate regardingthe actions management should take withrespect to…

A: Dividend policy is the policy the company uses to structure its dividend payout to its shareholders.

Q: How does shareholder value relate to capital structure?

A: The combination of various types of external funds, known as capital, used to finance a corporation…

Q: How do “windows of opportunity” impact a firm’s capital structure?

A: Windows of opportunity : In simple words, windows of opportunity, in this context, relates to the…