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Capital Structure and Gearing

C/F/963. Examination of capital structure

WORDS:
1900
DATE:
2010
PRICE:
19.99 GBP

This paper examines capital structure, focusing on the different theories that relate to it. The paper describes the characteristics of debt and equity, and of IAS-32 Financial Instruments. Descriptions are provided for warrants and options, perpetual debt, redeemable preference shares, non redeemable preference shares, convertible securities with options, zero coupon bonds, and hybrid instruments. The paper also discusses financial instruments with contingent settlements, and concludes by identifying the optimal capital structure.

 

KEYWORDS: Capital structure IAS-32 Financial Instruments: debt, equity, warrants, options, perpetual debt, redeemable preference shares, non redeemable preference shares, zero coupon bonds, hybrid instruments.,