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TAX PLANNING (Tables)

TABLE Effect of Taxes on Capital Structure Decision The alternative III is obviously the best. Effect of Taxes on Financing Alternatives Thus, the company will be able to raise dividend on shares to 25 per cent only if the return the new-project under the four...

TAX PLANNING

TAX PLANNING Finally, tax planning is likely to have a significant bearing on capital structure decisions. Under till  Tax Act, 1%1, while interest on borrowed funds is allowed as a deduction under Section is dividend on shares is not deductible from the operating...

CHARACTERISTICS OF THE COMPANY

CHARACTERISTICS OF THE COMPANY The characteristics of a company in terms of size and credit standing, among others, also vital role in determining the share of senior securities and equity in its capital structure. The management’s freedom of choice is extremely...

TIMING OF ISSUE

TIMING OF ISSUE Closely related to flexibility in deciding the types of funds to be used is the question of Frequently very substantial savings may be obtained by proper timing of security issues. The timing of the public offerings is also an important consideration...