WhatsApp us

Capitalization: Meaning

Need a hand with your homework? Get expert help now and smash those grades! 💯 Submit your assignment today!

100% human expertise, no AI. 🤖

  • Experienced Tutors
  • On-Time Delivery
  • Plagiarism-Free Work
myhomeworkhelp reviews
Order Homework Help From Experts
Please enable JavaScript in your browser to complete this form.
Please enter the details of your homework requirements.
What should we call you?
Zero spam guarantee.
For order updates only.

Hire Best Homework Helpers

MyHomeworkHelp is proud to work with a team of expert professionals with verified academic credentials, selected for their proven skills in their field of study.

Confidently hire experts from the top universities across the globe.

Benefits & Assurances

subjects covered

All Subjects Covered

subjects covered

Refund Guarantee

subjects covered

Experienced Tutors

subjects covered

Unlimited Revisions

subjects covered

On Time Delivery

subjects covered

Chat With Expert

Capital is the essential requirement to run an organization successfully. One needs capital from the very start of their business. Here, finance manager has to take correct steps to allocate capital investment precisely with the help of forecasting. This helps in maintaining the capital investments and other funds in different forms.

Capitalization:

It is defined as the total sum of the capital for a company that is the conversion of their investments at every stage.

According to one of the experts, A. S. Dewing, “Capitalization is defined as the valuation of capital. It includes capital stock and debt as well.”

Another expert, Gerrtenbeg has defined the statement for Capitalization as, “The total financial value of capital for all practical operations that is employed in the business is considered as Capitalization.”

What is Capital Structure?

To obtain fund from the market, a company issues different securities as investments such as ordinary shares, bonds, debentures and preference shares. This number of investments issued by the company is listed as Capital Structure.

Gerrtenbeg defined Capital Structure as the make-up of Capitalization. It is also termed as Financial Structure.

According to Weston and Brighan, “Considering the preferred stock, net-worth and long-term debt, Capital Structure is financing of the firm.”

Factors that Affect Capital Structure:

Several factors that are responsible to put an effecton any company’s Capital Structure that include:

  1. Legal Restrictions:

Whether it is Corporate Institute or Commercial Institute, every company is restricted to some extent with the laws regarding their issue of securities. Especially in India, promoters have to follow certain provisions as the banking sector is only allowed to issue securities of equity shares.

  1. Period of Finance:

It determines one’s Capital Structure. The period of finance can be met through usual borrowings for short-term achievements. But when the fund is required for more than 8 years, there is a need for issuing debentures. There are cases when the need for issuing of equity shares is required for funding more than 10 years.

  1. Nature of Enterprise:

The financial structure of an institute varies according to the nature of business. Similar businesses can have varying income statistics that regulate the risk level. If the organization is engaged business that supports public utility services, then it mostly prefers issuing equity and debentures.

  1. Size of the Company:

Sizeof the company matters in handing funds!Here, small-scale organizations find difficulties when they require long-term debts. Considering the same fact for large-scale organizations, these are having less risk as they get easy borrowing from different sources.

  1. Market Conditions:

As per the market trend, Capital Structure of a company gets changed. Investors like to invest more when the market moves in positive direction. If the condition gets reversed, then investors look for finding safety measures. At this time, they start investing in debentures rather than equity shares.

  1. Government Policy:

If there is any change in monetary fund, financial policies or fiscal, it affects Capital Structure of a company. Here, proper decision is required to maintain financial balance of the company to match-up the statistics with upcoming changes. In this context, any change in provision of the SEBI affects investment policy of the company as well.

  1. Trading on Equity:

Issuing shares or debentures help in the mobilizing the capital of a company. Here, the rate of return is always greater than the total amount of investment if it has been done precisely. This is termed as trading on equity. Hence, a company gets ahigher rate of earnings that help in less investment of capital. This is one of the major benefits of trading on equity.

  1. Purpose of Financing:

A company should keep in mind that the purpose of financing is to maintain proper balance of investment and earnings. While formulating the Capital Structure, the company can raise their funds through equity shares. For direct productive purposes, the organization should go for issuing debentures.

  1. Cost of Capital and Availability of Funds:

With the knowledge of cost of capital, any company is able to maintain their financing appropriately. Availability of funds needs the study of various types of financing in terms of capital investment to check availability of alternatives and maintain the level of risk. This then determines the financial position of the company.

  1. Need of Investors:

The psychological attitude of different investments is one of the major concerns to maintain the Capital Structure. Some prefer to invest in equities and others prefer debentures. In this context, debenture investors have low risk because of stable income statistics whereas equity investors have higher risks along with higher rate of returns.

Basic Patterns of Capital Structure:

  • Issuing equity shares only
  • Issuing equity shares along with preference shares
  • Issuing equity plus debentures
  • Issuing equity shares plus preference shares plus debentures

Capital Structure is thus, important to maintain properly in an organization by finance manager.

 

Links of Previous Main Topic:-

Links of Next Finance Topics:-

Your Price: $15.00 $13.99 🔥

Pricing may change based on requirements

Get Homework Help In

Maths and Statistics

Science

Humanities & Arts

l

Essay Writing

How Our Homework Service Works

FAQ number 1

Share your requirements

FAQ number 2

Make secure payment

FAQ number 3

Get homework answers

FAQ - Our Homework Help Services

We have put together some commonly asked questions.

K
L

Is there a website that can do my homework?

Yes, if you are looking for such a site, MyHomeworkHelp is one of the leading homework help websites that can do your homework and assist with various academic needs. Here's all you need to know about our team and how they provide flawless homework help.

If you find yourself thinking, "I need to pay someone to do my homework," our team is ready to assist. It's common for students to seek help with their homework, and our experts are prepared to provide personalized support tailored to your needs.

You can visit www.myhomeworkhelp.com to get all types of homework-related help from our experts.

K
L

What is the best homework help website?

The best homework help website enhances students' experience of getting homework assistance from experts. MyHomeworkHelp, recognized as one of the best online homework help platforms, serves as both a guide and a solution provider for students. We've been rocking the homework help scene since 2012, assisting over 20k students, and we must be doing something right because more than 70% of them keep coming back for more. Whether you need help understanding concepts, completing assignments, or getting your homework done, MyHomeworkHelp is here to support your academic journey as the best college homework website.

K
L

How can I get help with my homework?

1. Tell us your homework details

To get started with online homework help, simply choose the type of homework assistance you need. When filling out the order form, make sure to provide detailed instructions, including the deadline, number of pages, grading rubric, and any other relevant information.

2. Confirm your order

Review the details of your homework order and proceed to make a secure payment using VISA, Mastercard, or PayPal. Once the payment is processed, our experts will begin working on your homework immediately.

3. Receive your order

The completed homework will be delivered directly to your email. This ensures that students receive their homework assistance on time and can meet their academic requirements without stress.

K
L

Do you guarantee plagiarism-free homework answers?

We take academic integrity very seriously and understand the importance of providing homework answers free of plagiarism. Our tutors are committed to delivering original and unique content for every assignment. Here are the steps we take to ensure your homework is plagiarism-free:

  1. Original Work: Each assignment is completed from scratch based on your specific requirements and guidelines.
  2. Expert Tutors: Our tutors are highly qualified and experienced in their respective fields, ensuring the work they produce is both original and high-quality.
  3. Plagiarism Detection: We use advanced plagiarism detection software to scan every assignment before delivery. This ensures that the content is unique and free of any copied material.
  4. No AI Usage: We guarantee that all work is 100% human-crafted expertise, with no AI-generated content involved. This ensures the authenticity and quality of the work provided.
  5. Quality Assurance: Our quality assurance team reviews each assignment for originality and adherence to academic standards before it is sent to you.

By following these stringent measures, we guarantee that the homework answers you receive are completely free of plagiarism and AI involvement. You can trust us to provide you with original and high-quality academic assistance.

For more information on our guarantees, please visit our guarantees page.

K
L

Is your homework service confidential?

Absolutely! Confidentiality is one of the basic guarantees of our service at MyHomeworkHelp.com.

When our customers make their homework orders, they know their information remains 100% confidential.

Even your homework writer will not be provided with your personal details. So, when you hire a professional homework helper on our website, rest assured that your information will remain private and safe.

For a comprehensive understanding of how we protect your privacy, please refer to our Privacy Policy.

K
L

How much do I need to pay to get my homework done?

We do not have monthly fees or minimum payments for our services. Each homework assignment is quoted a unique price, based on the tutor’s estimate of the time required to complete your work. There are no obligations, and you are free to discuss the price quote with the tutor.

When you decide to pay someone to do my homework, our pricing starts at $13.99 per page. The final pricing depends on various factors including the page count, deadline, nature of the task, and the homework writer’s level of expertise.

We offer flexible payment options, allowing you to make a partial payment to start working on your assignment and pay the remaining amount upon completion. This ensures no pressure of up-front payment and no hidden order costs.

Our dynamic pricing model takes into account the type of assignment, its urgency, and the complexity of the task. For instance, shorter deadlines and more complex assignments may increase the price. You can get an instant quote by selecting your assignment type, deadline, and page count on our website.

Get the help with your homework at competitive rates, tailored to your specific needs and deadlines. For more detailed information on pricing, please visit our pricing page.

K
L

Who are the experts who will help me with my homework?

We work with subject experts from all over the world. We hire them with the help of complex tests in the disciplines of their expertise. We also verify the IDs and academic transcripts of our homework writers to be sure that our experts have a bachelor's or master’s or a PhD degree. This is how we can be sure of the proficiency of our panel of experts who will help you with your homework. Here's all you need to know about our team and how they provide flawless homework help.

  1. Our team comprises top-tier homework helpers who excel in addressing and resolving questions on various topics. Each tutor effectively utilizes their expertise to concentrate on the core subject matter and thoroughly analyze it.
  2. Our professional tutors specifically craft each assignment tailored to students' requirements, including preferred formats, citation styles, and essential elements.
  3. Whether it’s coursework, dissertations, essays, or case studies, our platform guarantees timely college homework help across a wide range of academic papers. Don’t hesitate any longer; connect with our tutors when you seek help with your homework for perfect assignment solutions and improved grades.

K
L

Can I chat with my homework helper for updates?

Yes, you can certainly chat with your homework helper on our secure chatboard platform. MyHomeworkHelp.com provides a direct communication channel between you and your assigned expert (while maintaining privacy). This feature allows you to ask questions, clarify instructions, and provide additional information about your homework order to ensure that the help you receive is tailored to your specific needs.

You'll be notified by email whenever there are new messages for you, but we advise regularly checking your personal page to ensure no critical updates from your writer are overlooked.

Should you have an urgent matter to address, do not hesitate to contact the support team for assistance. This system ensures that students can stay updated on their homework paper progress and maintain clear communication with their experts.

K
L

What makes you the best homework helper?

MyHomeworkHelp is ranked as one of the best online homework helpers, providing exceptional support to students. We've been excelling in the homework assistance arena since 2012, assisting over 200k students, and consistently achieving high satisfaction rates, with more than 70% of our students returning for additional help. But do not take our word for it! See our independent reviews on google, facebook, sitejabber, and on Trustpilot. For all collated reviews, see here

We ensure our prices remain competitive and offer attractive discounts to make our services accessible. Our commitment to delivering plagiarism-free solutions guarantees the integrity and originality of your assignments. These attributes, combined with our dedication to personalized support and timely delivery, establish MyHomeworkHelp as the premier homework helper for all your academic needs.

K
L

How will I receive my homework order?

You'll receive the initial version of your paper as a secure, non-editable PDF within your specified deadline. This allows you to review the content and decide if any revisions or edits are required. Our homework service will refine the homework paper based on your feedback.

Should the document meet your expectations and not require any changes, you can simply approve the order and access the editable Word .doc file.