Capital structure

Capital structure


1- Discuss the concept of a firm’s “target” capital structure. How might this be determined?



2- Explore the upsides and downsides to the use of financial leverage.





3- If the company is just barely making it even with the financial help this an become a huge burden.



What options does a firm have in this situation?




4- What is an Initial Public Offering (IPO)? How does an IPO allow an organization to grow financially? When is a merger or an acquisition, rather than an IPO, a more appropriate way to grow?