BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Quantitative aspect
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Qualitative aspect
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Both (a) and (b)
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None of these
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Detailed explanation-1: -Answer: Capital structure is called Quantitative aspect as well as Qualitative aspect.
Detailed explanation-2: -Capital structure is a broad term and it deals with qualitative aspect of finance. While capitalization is a narrow term and it deals with the quantitative aspect.
Detailed explanation-3: -It is concerned with the qualitative aspect of the financial planning of an enterprise since it deals with the proportion among the different types of securities.
Detailed explanation-4: -Introduction. Capital structure refers to the specific mix of debt and equity used to finance a company’s assets and operations. From a corporate perspective, equity represents a more expensive, permanent source of capital with greater financial flexibility.
Detailed explanation-5: -In finance, capitalization is a quantitative assessment of a firm’s capital structure. Here it can refer to the book value cost of capital, which is the sum of a company’s long-term debt, stock, and retained earnings. The alternative to the book value is the market value or market capitalization.