Establishing a Capital Structure for a Firm Is Not Simple

question 6

Essay

Establishing a capital structure for a firm is not simple.Although financial theory guides the process,there is no quantifiable formula to follow.However,there are key factors which should be considered as they affect the target ratio.List and explain three such factors.

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Definitions:

Sebum

An oily secretion of the sebaceous glands that helps lubricate and protect the skin and hair.

Tears

A clear liquid secreted by the lacrimal glands of the eye to lubricate the eyes and protect them from foreign particles.

Vitreous Humor

A clear gel that fills the space between the lens and the retina of the eyeball.

Presbyopia

A condition associated with aging in which the eye exhibits a progressively diminished ability to focus on near objects.