Question

The capital structure is the particular combination of debt and equity used by a company to finance its overall operations and growth. Discuss any TEN factors that determine the Capital Structure of a company.

A) Market conditions, interest rates, company size, industry norms, growth prospects, tax considerations, management philosophy, economic conditions, competition, profitability.
B) Employee satisfaction, customer loyalty, product quality, supplier relationships, advertising strategies, technological advancements, legal environment, political stability, social responsibility, globalization.
C) Research and development, brand image, product innovation, employee training, strategic partnerships, organizational culture, cost of production, corporate governance, environmental sustainability, mergers and acquisitions.
D) Employee turnover, market share, stock prices, dividend policy, corporate social responsibility, customer service, supply chain management, product pricing, technological obsolescence, economic inequality.

Answer 1

The capital structure of a company is determined by factors such as market conditions, interest rates, company size, industry norms, growth prospects, tax considerations, management philosophy, economic conditions, competition, and profitability.

Step-by-step explanation:

Capital structure is influenced by various factors, and here are ten key factors that determine the capital structure of a company:

1. Market conditions
2. Interest rates
3. Company size
4. Industry norms
5. Growth prospects
6. Tax considerations
7. Management philosophy
8. Economic conditions
9. Competition
10. Profitability

These factors impact the mix of debt and equity a company uses to finance its operations and growth.