Localfund.com - All about Fund and Investment
*Home>>>Debt Financing

Capital Structure?


At some point, it makes sense to stop financing operations with debt - what BEST describes this point?
A. When tax rates decline significantly.
B. When the Treasury Bill rates exceed the cost rate for issuing equity
C. When shortage costs intersect with carrying costs
D. When a company doesn't have very many capital assets.
E. When the tax benefit of debt equals the increasing costs of financial distress.

E

Tags
  Easy Money   Easy Investing   Earn Money   Direct Investment   Debt Financing   Capital Investment   Business Investment   Business financing
Related information
  • Consolidating debts?

    Yes you are cosolidating your debts, yes the payment may be lower, but you will definately owe more, pay back more and put your home at risk if you get into trouble. Please think seriously before y...

  • Capital Structure........does my ans correct?

    No, u don't need all the 20 mil (which goes to RE and hence equity). you only need 15 mil. i) 0.3*15 = 4.5 ii) 10.5 iii) The residual theory of dividends suggests that dividend payments s...

  • Can anyone solve this finance question for me... its urgent?

    Value of perpetuity = (Coupon)/(r-g) g = 0 r = WACC Value = (100m*/(WACC-0%) Assume WACC = 100% equity K(e) = cost of equity 650m = [100m/K(e)] K(e) = 100m/650m = 15.385%

    ...
  • Where can i apply for a $5,000.00 loan to pay off my debts?

    Newsflash: Borrowing money to pay off debts only puts you further in debt. The first step to getting out of the hole is to stop digging!

    ...
  • Where in Miami, Fl can I buy a car with really bad credit?

    try these people ...

  • How can you value the cost of equity of an ungeared company?

    Try here: ...

  • Buena Terra Corporation is reviewing its capital budget for the upcoming year.?

    you're leaving out critical information. There's no way to answer "d" without more information...

    ...
  • Will my credit score be higher if I..?

    First off, know who rates you and it isn't the company that issued the loans, but a rating service that the issuer subscribes to like equifax or transunion. Here's a little list to keep a...

  •  

    Categories--Copyright/IP Policy--Contact Webmaster