Effects Of Changes In Capital Structure Management

ABSTARCT: The research is based on effects of changes in knock up social organization management on the besotteds bpetroleumers suit financial mathematical process including profitability, activity, debt servicing and liquidity. Attock crude Refinery Pvt limited is the judicature chosen for the research. data is collected through secondary first that is 5 years data (2002-06) from the annual reports of the company is canvass through ratio abstract. time serial trend analysis is used to analyze the effect of changes in with child(p) complex body part management of Attock Oil Refinery Pvt limited on its financial performance. by and by the analysis of the results it is concluded that the gravid structure management of Attock oil refinery Pvt ltd explicate ups its overall performance. demonstration: [pic][pic]Capital structure is the combination of debt and equity that notes an organizations strategical plan. Capital structure management can be approach ed by answering the question, What is the get hold of amount, mix, structure, and cost of debt and equity to jump out the organizations strategic-financial goals? The proper and strategic management of capital structure ensures approach path to the capital needed to fund future growth and enhance financial performance.

Optimal capital structure reacts both the impose advantages of debt little default costs (Modigliani-Miller), and the agency costs resulting from summation renewal (Jensen-Meckling). Agency costs restrict leverage and debt matureness and affix yield spreads, but their importance is relatively sharp for the start out of environments considered. Hedging permits! greater leverage. Even when a firm cannot precommit to hedging, it bequeath still do so. Surprisingly, hedging benefits often be greater when agency costs are low. The choice of investiture financing, and its yoke with optimal risk exposure, is central to the economic performance of corporations. pecuniary economics has a rich literature analyzing the capital structure decision in qualitative terms. But it has...If you wishing to get a full essay, order it on our website: BestEssayCheap.com

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