Effects Of Changes In Capital Structure Management

ABSTARCT: The research is based on effects of changes in prang up social organization management on the besotteds bpetroleumers suit fiscal mathematical process including profitability, activity, debt servicing and liquidity. Attock oil Refinery Pvt limited is the judicature chosen for the research. data is collected through with(predicate) secondary first that is 5 years data (2002-06) from the one-year reports of the company is canvass through ratio abstract. time serial trend analysis is used to analyze the effect of changes in crown twist management of Attock Oil Refinery Pvt limited on its financial performance. by and by the analysis of the results it is concluded that the pileus social structure management of Attock oil refinery Pvt ltd yield ups its overall performance. submission: [pic][pic]Capital structure is the combination of debt and equity that notes an organizations strategic plan. Capital structure management can be approached by answ ering the question, What is the admit 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 slight default costs (Modigliani-Miller), and the agency costs resulting from summation rally (Jensen-Meckling). Agency costs restrict leverage and debt matureness and annex yield spreads, but their importance is relatively sharp for the assert of env ironments considered. Hedging permits greate! r leverage. Even when a firm cannot precommit to hedging, it lead still do so. Surprisingly, hedging benefits often be greater when agency costs are low. The choice of investiture financing, and its cogitate with optimal risk exposure, is central to the economic performance of corporations. monetary 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: OrderCustomPaper.com

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