SlideShare a Scribd company logo
1 of 2
Importance of international capital structure are:
Capital structure is defined as a combination or balance between
equity and debt which the business is use to finance its day to
day operation, assets and future growth.
Importance:
1. First and important matter of international capital structure is
the company have effective overview of all her claims that most
of the different players have on the business. The debt owner
tight or hold these claims in the manner in lump sum of cash
and according to these interest payment and the equity owner
hold these claims in the manner of percentage of that firms
future profit and depend on its earning.
2. It is easy to understand that how risky is investing in the
business. and how the expensing the financing should be.
Capital providers provide proportional weighting of different
types of fund which were financed to the company.
The risk can identify when working with cash, credit and
inventory management is that:
Working with cash is better for organization that gives more
beneficiary background to the company. And if company holds
more cash than his maximum criteria then the company take less
return on the same. If these cash are in bank, the bank can give
interest on them.
Credit Management - By the way of credit management, the
company are in more and more bad debts which company are in
loss after some time. An its usage of funds are restricted.
Inventory Management - Inventory management are those types
which the management are trackle all the inventory are in actual
received or not. It is loss for the company if goods are not
received in actual.
So, this is the risk which identifying when working with cash,
credit and inventory management.
References:
Brigham, E. F., & Ehrhardt, M. C. (2017). Financial
management: Theory & Practice, (15th ed.). Boston

More Related Content

Similar to  Importance of international capital structure areCapital s

Need help please writting this essay.The number one reason for a.pdf
Need help please writting this essay.The number one reason for a.pdfNeed help please writting this essay.The number one reason for a.pdf
Need help please writting this essay.The number one reason for a.pdf
arihantelehyb
 
introduction to financial management chapter one
introduction to financial management chapter oneintroduction to financial management chapter one
introduction to financial management chapter one
DerejeUrgecha1
 
Write a 1,250-1,500-word paper analyzing concepts of contemporary .docx
Write a 1,250-1,500-word paper analyzing concepts of contemporary .docxWrite a 1,250-1,500-word paper analyzing concepts of contemporary .docx
Write a 1,250-1,500-word paper analyzing concepts of contemporary .docx
sleeperfindley
 
Introduction to financial management
Introduction to financial managementIntroduction to financial management
Introduction to financial management
Dhairya Joshi
 

Similar to  Importance of international capital structure areCapital s (20)

Managing Business Debts " A book to enlargen your horizon in managing busines...
Managing Business Debts " A book to enlargen your horizon in managing busines...Managing Business Debts " A book to enlargen your horizon in managing busines...
Managing Business Debts " A book to enlargen your horizon in managing busines...
 
Week 4 financing an investment
Week 4  financing an investmentWeek 4  financing an investment
Week 4 financing an investment
 
Finance Essays
Finance EssaysFinance Essays
Finance Essays
 
Business Function- Finance.pptx
Business Function- Finance.pptxBusiness Function- Finance.pptx
Business Function- Finance.pptx
 
FM_Financing Decision_Unit.2 Updated.pptx
FM_Financing Decision_Unit.2 Updated.pptxFM_Financing Decision_Unit.2 Updated.pptx
FM_Financing Decision_Unit.2 Updated.pptx
 
financial instruments provide by bank.pdf
financial instruments provide by bank.pdffinancial instruments provide by bank.pdf
financial instruments provide by bank.pdf
 
Need help please writting this essay.The number one reason for a.pdf
Need help please writting this essay.The number one reason for a.pdfNeed help please writting this essay.The number one reason for a.pdf
Need help please writting this essay.The number one reason for a.pdf
 
Business Communication part 1
Business Communication part 1Business Communication part 1
Business Communication part 1
 
Assignment on pecking order theory
Assignment on pecking order theoryAssignment on pecking order theory
Assignment on pecking order theory
 
Mezzanine finance explained
Mezzanine finance explainedMezzanine finance explained
Mezzanine finance explained
 
Financing Alternatives for Start-Ups and Small Businesses.pdf
Financing Alternatives for Start-Ups and Small Businesses.pdfFinancing Alternatives for Start-Ups and Small Businesses.pdf
Financing Alternatives for Start-Ups and Small Businesses.pdf
 
Chapter-One.ppt
Chapter-One.pptChapter-One.ppt
Chapter-One.ppt
 
introduction to financial management chapter one
introduction to financial management chapter oneintroduction to financial management chapter one
introduction to financial management chapter one
 
Write a 1,250-1,500-word paper analyzing concepts of contemporary .docx
Write a 1,250-1,500-word paper analyzing concepts of contemporary .docxWrite a 1,250-1,500-word paper analyzing concepts of contemporary .docx
Write a 1,250-1,500-word paper analyzing concepts of contemporary .docx
 
Introduction to financial management
Introduction to financial managementIntroduction to financial management
Introduction to financial management
 
FM PPT.pdf
FM PPT.pdfFM PPT.pdf
FM PPT.pdf
 
Chapter One CF .pdf
Chapter One CF  .pdfChapter One CF  .pdf
Chapter One CF .pdf
 
Sources and types of finance in business formation in Zimbabwe
Sources and types of finance in business formation in ZimbabweSources and types of finance in business formation in Zimbabwe
Sources and types of finance in business formation in Zimbabwe
 
Bus106 wk12 ch11 financial management
Bus106 wk12 ch11 financial managementBus106 wk12 ch11 financial management
Bus106 wk12 ch11 financial management
 
CHAPTER 1 INTRODUCTION TO PROJECT FINANCE
CHAPTER 1 INTRODUCTION TO PROJECT FINANCECHAPTER 1 INTRODUCTION TO PROJECT FINANCE
CHAPTER 1 INTRODUCTION TO PROJECT FINANCE
 

More from shandicollingwood

This is the second part of Margaret SangerSignificant Contribution.docx
This is the second part of Margaret SangerSignificant Contribution.docxThis is the second part of Margaret SangerSignificant Contribution.docx
This is the second part of Margaret SangerSignificant Contribution.docx
shandicollingwood
 
this is the scenariothis is a discussion I need a paragraph under .docx
this is the scenariothis is a discussion I need a paragraph under .docxthis is the scenariothis is a discussion I need a paragraph under .docx
this is the scenariothis is a discussion I need a paragraph under .docx
shandicollingwood
 
this is the scenaro this is a discussion not a paperHSA515 Wee.docx
this is the scenaro this is a discussion not a paperHSA515 Wee.docxthis is the scenaro this is a discussion not a paperHSA515 Wee.docx
this is the scenaro this is a discussion not a paperHSA515 Wee.docx
shandicollingwood
 
This is the scenarioHSA515 Week 1 Scenario Script Health Care.docx
This is the scenarioHSA515 Week 1 Scenario Script Health Care.docxThis is the scenarioHSA515 Week 1 Scenario Script Health Care.docx
This is the scenarioHSA515 Week 1 Scenario Script Health Care.docx
shandicollingwood
 
this is the lecture that goes with the discussionHSA525 Week 4.docx
this is the lecture that goes with the discussionHSA525 Week 4.docxthis is the lecture that goes with the discussionHSA525 Week 4.docx
this is the lecture that goes with the discussionHSA525 Week 4.docx
shandicollingwood
 
This is the last part of your course project. There are two parts to.docx
This is the last part of your course project. There are two parts to.docxThis is the last part of your course project. There are two parts to.docx
This is the last part of your course project. There are two parts to.docx
shandicollingwood
 
This assingment is due Monday May 9th, 2016, at 1130 A.M. Pacific T.docx
This assingment is due Monday May 9th, 2016, at 1130 A.M. Pacific T.docxThis assingment is due Monday May 9th, 2016, at 1130 A.M. Pacific T.docx
This assingment is due Monday May 9th, 2016, at 1130 A.M. Pacific T.docx
shandicollingwood
 
This assignments contains 4 small assignments1.In this discussion .docx
This assignments contains 4 small assignments1.In this discussion .docxThis assignments contains 4 small assignments1.In this discussion .docx
This assignments contains 4 small assignments1.In this discussion .docx
shandicollingwood
 
This assignment requires you to examine your cultural values about d.docx
This assignment requires you to examine your cultural values about d.docxThis assignment requires you to examine your cultural values about d.docx
This assignment requires you to examine your cultural values about d.docx
shandicollingwood
 
This assignment should include the outline of PERSUASIVE SPEECH.docx
This assignment should include the outline of PERSUASIVE SPEECH.docxThis assignment should include the outline of PERSUASIVE SPEECH.docx
This assignment should include the outline of PERSUASIVE SPEECH.docx
shandicollingwood
 
This Assignment must be original, no plagerism,Examine the ways .docx
This Assignment must be original, no plagerism,Examine the ways .docxThis Assignment must be original, no plagerism,Examine the ways .docx
This Assignment must be original, no plagerism,Examine the ways .docx
shandicollingwood
 

More from shandicollingwood (20)

This is the second part of Margaret SangerSignificant Contribution.docx
This is the second part of Margaret SangerSignificant Contribution.docxThis is the second part of Margaret SangerSignificant Contribution.docx
This is the second part of Margaret SangerSignificant Contribution.docx
 
this is the scenariothis is a discussion I need a paragraph under .docx
this is the scenariothis is a discussion I need a paragraph under .docxthis is the scenariothis is a discussion I need a paragraph under .docx
this is the scenariothis is a discussion I need a paragraph under .docx
 
this is the scenaro this is a discussion not a paperHSA515 Wee.docx
this is the scenaro this is a discussion not a paperHSA515 Wee.docxthis is the scenaro this is a discussion not a paperHSA515 Wee.docx
this is the scenaro this is a discussion not a paperHSA515 Wee.docx
 
This is the questionNavigate through the official website for .docx
This is the questionNavigate through the official website for .docxThis is the questionNavigate through the official website for .docx
This is the questionNavigate through the official website for .docx
 
This is the scenarioHSA515 Week 1 Scenario Script Health Care.docx
This is the scenarioHSA515 Week 1 Scenario Script Health Care.docxThis is the scenarioHSA515 Week 1 Scenario Script Health Care.docx
This is the scenarioHSA515 Week 1 Scenario Script Health Care.docx
 
This is the reading and the chart that has to be completed is includ.docx
This is the reading and the chart that has to be completed is includ.docxThis is the reading and the chart that has to be completed is includ.docx
This is the reading and the chart that has to be completed is includ.docx
 
This is the question. Please can you use APA format. I need refere.docx
This is the question. Please can you use APA format. I need refere.docxThis is the question. Please can you use APA format. I need refere.docx
This is the question. Please can you use APA format. I need refere.docx
 
this is the lecture that goes with the discussionHSA525 Week 4.docx
this is the lecture that goes with the discussionHSA525 Week 4.docxthis is the lecture that goes with the discussionHSA525 Week 4.docx
this is the lecture that goes with the discussionHSA525 Week 4.docx
 
This is the last part of your course project. There are two parts to.docx
This is the last part of your course project. There are two parts to.docxThis is the last part of your course project. There are two parts to.docx
This is the last part of your course project. There are two parts to.docx
 
This course is Diversity, not HRMUtilizing the resources from th.docx
This course is Diversity, not HRMUtilizing the resources from th.docxThis course is Diversity, not HRMUtilizing the resources from th.docx
This course is Diversity, not HRMUtilizing the resources from th.docx
 
This course introduces themes in literature and provides guided stud.docx
This course introduces themes in literature and provides guided stud.docxThis course introduces themes in literature and provides guided stud.docx
This course introduces themes in literature and provides guided stud.docx
 
This assingment is due Monday May 9th, 2016, at 1130 A.M. Pacific T.docx
This assingment is due Monday May 9th, 2016, at 1130 A.M. Pacific T.docxThis assingment is due Monday May 9th, 2016, at 1130 A.M. Pacific T.docx
This assingment is due Monday May 9th, 2016, at 1130 A.M. Pacific T.docx
 
This assignments contains 4 small assignments1.In this discussion .docx
This assignments contains 4 small assignments1.In this discussion .docxThis assignments contains 4 small assignments1.In this discussion .docx
This assignments contains 4 small assignments1.In this discussion .docx
 
this assignment, you will review your current level of adjustment..docx
this assignment, you will review your current level of adjustment..docxthis assignment, you will review your current level of adjustment..docx
this assignment, you will review your current level of adjustment..docx
 
This assignment requires you to examine your cultural values about d.docx
This assignment requires you to examine your cultural values about d.docxThis assignment requires you to examine your cultural values about d.docx
This assignment requires you to examine your cultural values about d.docx
 
This assignment should include the outline of PERSUASIVE SPEECH.docx
This assignment should include the outline of PERSUASIVE SPEECH.docxThis assignment should include the outline of PERSUASIVE SPEECH.docx
This assignment should include the outline of PERSUASIVE SPEECH.docx
 
This assignment should include the following partsØIntroducti.docx
This assignment should include the following partsØIntroducti.docxThis assignment should include the following partsØIntroducti.docx
This assignment should include the following partsØIntroducti.docx
 
This assignment requires that your format a fake manuscript into APA.docx
This assignment requires that your format a fake manuscript into APA.docxThis assignment requires that your format a fake manuscript into APA.docx
This assignment requires that your format a fake manuscript into APA.docx
 
This Assignment must be original, no plagerism,Examine the ways .docx
This Assignment must be original, no plagerism,Examine the ways .docxThis Assignment must be original, no plagerism,Examine the ways .docx
This Assignment must be original, no plagerism,Examine the ways .docx
 
This assignment must be completed by 09052016 at 8PM Pacific Stand.docx
This assignment must be completed by 09052016 at 8PM Pacific Stand.docxThis assignment must be completed by 09052016 at 8PM Pacific Stand.docx
This assignment must be completed by 09052016 at 8PM Pacific Stand.docx
 

Recently uploaded

Activity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdfActivity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdf
ciinovamais
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
heathfieldcps1
 

Recently uploaded (20)

Energy Resources. ( B. Pharmacy, 1st Year, Sem-II) Natural Resources
Energy Resources. ( B. Pharmacy, 1st Year, Sem-II) Natural ResourcesEnergy Resources. ( B. Pharmacy, 1st Year, Sem-II) Natural Resources
Energy Resources. ( B. Pharmacy, 1st Year, Sem-II) Natural Resources
 
Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...
Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...
Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...
 
Class 11th Physics NEET formula sheet pdf
Class 11th Physics NEET formula sheet pdfClass 11th Physics NEET formula sheet pdf
Class 11th Physics NEET formula sheet pdf
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The Basics
 
Unit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptxUnit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptx
 
Grant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy ConsultingGrant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy Consulting
 
Sociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning ExhibitSociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning Exhibit
 
Activity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdfActivity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdf
 
How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17How to Give a Domain for a Field in Odoo 17
How to Give a Domain for a Field in Odoo 17
 
Measures of Central Tendency: Mean, Median and Mode
Measures of Central Tendency: Mean, Median and ModeMeasures of Central Tendency: Mean, Median and Mode
Measures of Central Tendency: Mean, Median and Mode
 
Python Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxPython Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docx
 
Unit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptxUnit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptx
 
Application orientated numerical on hev.ppt
Application orientated numerical on hev.pptApplication orientated numerical on hev.ppt
Application orientated numerical on hev.ppt
 
Measures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SDMeasures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SD
 
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
 
Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17
 
Asian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptxAsian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptx
 
psychiatric nursing HISTORY COLLECTION .docx
psychiatric  nursing HISTORY  COLLECTION  .docxpsychiatric  nursing HISTORY  COLLECTION  .docx
psychiatric nursing HISTORY COLLECTION .docx
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
Role Of Transgenic Animal In Target Validation-1.pptx
Role Of Transgenic Animal In Target Validation-1.pptxRole Of Transgenic Animal In Target Validation-1.pptx
Role Of Transgenic Animal In Target Validation-1.pptx
 

 Importance of international capital structure areCapital s

  • 1. Importance of international capital structure are: Capital structure is defined as a combination or balance between equity and debt which the business is use to finance its day to day operation, assets and future growth. Importance: 1. First and important matter of international capital structure is the company have effective overview of all her claims that most of the different players have on the business. The debt owner tight or hold these claims in the manner in lump sum of cash and according to these interest payment and the equity owner hold these claims in the manner of percentage of that firms future profit and depend on its earning. 2. It is easy to understand that how risky is investing in the business. and how the expensing the financing should be. Capital providers provide proportional weighting of different types of fund which were financed to the company. The risk can identify when working with cash, credit and inventory management is that: Working with cash is better for organization that gives more beneficiary background to the company. And if company holds more cash than his maximum criteria then the company take less return on the same. If these cash are in bank, the bank can give interest on them. Credit Management - By the way of credit management, the company are in more and more bad debts which company are in loss after some time. An its usage of funds are restricted.
  • 2. Inventory Management - Inventory management are those types which the management are trackle all the inventory are in actual received or not. It is loss for the company if goods are not received in actual. So, this is the risk which identifying when working with cash, credit and inventory management. References: Brigham, E. F., & Ehrhardt, M. C. (2017). Financial management: Theory & Practice, (15th ed.). Boston