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?