What are the factors that influence optimal capital structure?
What are the factors that influence optimal capital structure? Capital Structure: 10 Factors Influencing Capital Structure – Explained!Financial Leverage or Trading on Equity: Expected Cash Flows: Stability of Sales: Control over the Company: Flexibility of Financial Structure: Cost of Floating the Capital: Period of Financing: Market Conditions: What important factors in addition to quantitative factors should a firm consider when it is making a capital structure decisions? In addition to a consideration of tax effects, financial distress costs, agency costs, the business risk facing the firm, EBIT-EPS analysis, and cash insolvency analysis, there are additional factors normally considered as a...