Published by:
Harvard Business Publishing
Length: 12 pages
Abstract
Leading ideas and theories regarding capital structure and capital assets are translated into a useable form for managers. The suggested framework for analysis concentrates on three areas related to preliminary investment decisions: tentative investment level and estimates of cash flow and earnings; the debt/equity structure or amount of debt to be carried; and dividend policy. Investment decisions influence capital cost which in turn influences investment volume.
About
Abstract
Leading ideas and theories regarding capital structure and capital assets are translated into a useable form for managers. The suggested framework for analysis concentrates on three areas related to preliminary investment decisions: tentative investment level and estimates of cash flow and earnings; the debt/equity structure or amount of debt to be carried; and dividend policy. Investment decisions influence capital cost which in turn influences investment volume.