7/29/2019 capital structure power point presentation

1/6

INTRODUTION Every organization requires funds to run and maintain its business

sources of funds are required to finance for both.

Long term assets (fixed assets)

Net working capital (Positive Current assets).

A firm can easily estimate the required funds by a detailed study of the investmentdecision.

Generally capital is raised from the prime source are

Equity

Debt

7/29/2019 capital structure power point presentation

2/6

NEED OF THE STUDY

The corporate and personal income taxes do not exist.

The business risk is constant over time and is assumed tobe independent of its capital structure.

The given the assumptions of perfect information andrationality.

The business risk is equal among all firms with in similaroperating environment.

7/29/2019 capital structure power point presentation

3/6

OBJECTIVE OF THE STUDY :

To know over all the cost of capital (KO) and the value of

the firm (V) are independent of the capital structure.

To know the capitalization rate of an equity and premiumfor financial risk.

To know cut off rate for investment purposes is completelyindependent of the way in which an investment isfinanced.

7/29/2019 capital structure power point presentation

4/6

RESEARCH METHODOLOGY :

Methodology is a systematic procedure of collecting information in order to analyze and

verify a phenomenon. The collection of data through two principle sources viz.

(1) Primary data

(2) Secondary data

PRIMARY DATA:

It is the information collected directly without any reference.

. Some of the information had verified or supplemented with personal observation, the data collected through

conducting the personal interview with the officers of Ibays Suzuki Pvt Ltd.

SECONDARY DATA:

The secondary data was collected from already published sources such as pamphlets annual reports, reports andinternal records

Articles published in business details like the economic times, business time etc.

7/29/2019 capital structure power point presentation

5/6

SCOPE OF THE STUDY

The term 'capital structure in automobile industry services' refersto

those public and private limited companies that are using thedifferent capital sources in the commercial automobile industryservices.

These companies may have in their capital structure like equityshare capital, preference share capital, debenture etc.

The study is basically made to analyze the various capital structureschemes to highlight the diversity of capital in Ibays SuzukiCompany.

7/29/2019 capital structure power point presentation

6/6

LIMITATIONS OF THE STUDY The data of study of project collected of investor or

capital structure may not applicable in the situations.

The study of capital structure analysis of companyfinancial position may be affected or not.

It is dipped to judge the results-value due to thechange market values of the firm.