1. Introduction to Capital Structure The term capital structure refers to the relationship between the various long-term source financing such as equity capital, preference share capital and debt capital. Deciding the suitable capital structure is the important decision of the financial management because it is closely related to the value of the firm. A company may raise its total capital [...]
Here is a term paper on ‘Capital Formation’. Find paragraphs, long and short term papers on ‘Capital Formation’ especially written for school and college students. Term Paper on Capital Formation Term Paper # 1. Meaning of Capital Formation: Capital formation means the increase in the stock of real capital in a country. In other words, capital formation involves making of [...]
In the modern free-market economy, the process of capital formation consists of the following three stages: 1. An increase in the rate of real savings so that resources that would have been devoted to the production of consumption goods should be released for the purpose of capital formation. 2. Existence of a good financial system so that the available resources [...]