14

Financial Planning and Capital Structure

LEARNING OBJECTIVES

After studying this chapter, you should be able to know —

  • Meaning of Financial Planning
  • Objectives of Financial Planning
  • Importance of Financial Planning
  • Meaning of Capital Structure
  • Meaning of an Optimum Capital Structure
  • Features of an Appropriate Capital Structure
  • Factors Determining the Capital Structure
  • Meaning of Share Capital
  • Meaning of Capital
  • Meaning of Capitalisation
  • Distinction among Capitalisation, Capital and Share Capital
  • Over-Capitalization – Meaning, Causes, Effects and Remedy
  • Under-Capitalization – Meaning, Causes, Effects and Remedy
  • Distinction between Over-Capitalization and Under-Capitalization

Meaning of Financial Planning

Broadly ...

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