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Yogita Ingle 5 years, 8 months ago
Consumer : A consumer is generally understood as a person who uses consumer goods or avails any service. Consumer Awareness is an act of making sure the buyer or consumer is aware of the information about products, goods, services, and consumers rights. Consumer awareness is important so that buyer can take the right decision and make the right choice. Consumers have the right to information, right to choose, right to safety.
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Gaurav Seth 5 years, 8 months ago
Factors affecting capital structure :
(i)Cost of debt If the rate of interest on debt is high, the company should use less debt in its capital structure, and vice-versa.
(ii) Cost of equity When a company increases debt, the financial risk faced by equity shareholders increases. Thus, debt can be used upto a limit. Beyond that point, cost of equity may go up and share prices may decrease.
(iii) Interest coverage ratio ICR refers to the no. of times earnings before interest and tax covers the interest obligation. Higher the ICR, the company can borrow more funds and vice-versa.
(iv) Debt service coverage ratio It refers to the ratio that takes care of deficiencies in the ICR. A higher DSCR indicates better ability of the company to meet its cash commitments and borrow more funds.
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Charu Gautam 5 years, 8 months ago
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