Financial Management and Capital Structure : Report
Added on 2020-07-23
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FINANCIALMANAGEMENT
Table of ContentsINTRODUCTION...........................................................................................................................1TASK .............................................................................................................................................1LITERATURE REVIEW ...........................................................................................................1CONCLUSION ...............................................................................................................................6REFRENCES ..................................................................................................................................7.........................................................................................................................................................7
INTRODUCTIONFinancial management described as the management and controlling of money in order toachieve organisational goals and objectives (Albul, Jaffee and Tchistyi, 2015). It can beconsidered as the important function of organisation which is directly associated by the top levelmanagement department. Financial management refers to the budgeting area which involvesplanning for atypical and typical expenses that are essential for organisational activities andperformance. It is very important term because it help in effective financial decision. Capital isan essential element for every business organisation because it helps in running businessactivities in an effective manner so that company can easily get more profit and revenue andincrease their financial position. Capital structure considered as how an organisation providecapital and finances for conducting over all operations and growth with the help of using varioussources of funds. This report is based on the financial management and capital structure. TASKLITERATURE REVIEW Topic:Optimal Capital Structure.Capital structure is most essential term in every business organisation, firms are verymuch concern about establishing an effective capital structure in order to manage finance in firm.This structure is exist in firm for managing captive in firm in order to finance all operations andactivities of company which are increasing growth and profit. An organisation take funds formvarious resources in respect of effective completion of work and task. Capital structure is basedon the two major aspects such as debt and equity, in which debt considered in the form of bondissues and long term notes payable, thus equity can be described as the common stock, preferredstock and retained earnings. The requirement of working capital is also considered as theessential part of capital structure. Every firm is focused on preparing an effective balance sheetwith proper and accurate detail related with firms capital. It helps an organisation to investing infirms stock. Balance sheet can be ascertained as the strength of company which is categorised into three major parts such as working capital adequacy, capital structure ans asset performance.The capitalisation of company explains its compositions which are related with permanent andlong term capital, that considered as a combination of debt and equity (Boot and Thakor, 2011).Debt and equity considered as the key indicators of firms balance sheet, it is required for firm to1
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